SCOTUS refusal allows class-action suit against GSK

A class-action suit brought by insurer Humana Inc. (NYSE:HUM) against GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) seeking reimbursement for patients treated with GSK's diabetes drug Avandia rosiglitazone will proceed in a district court after the U.S. Supreme Court declined to review the case. Humana filed the class action suit in November 2010 seeking reimbursement for private health insurers that paid for the drug and subsequent healthcare costs for patients injured by the drug under the Medicare Advantage managed care program. GSK was seeking to have the suit dismissed on the grounds that private insurers are not eligible to seek damages under the Medicare Secondary Payer Act.

Last year, the U.S. Court of Appeals for the Third Circuit said Humana could file suit against GSK for expenses incurred for treating patients with Avandia under the act. The appeals court, which overturned a decision by a district court, said CMS regulations make clear that the act allows health insurers like Humana that offer coverage through Medicare Advantage a "private cause of action" to seek reimbursement. GSK said it is disappointed the Supreme Court declined to review the case. ...