State-Georgia Health Savings Accounts Legislation in Effect
New Georgia legislation, HB 977, will be in effect this year for affordable health savings account eligible high deductible plans. The law provides for an income tax deduction for high deductible health plans established and used with a health savings account and an income tax credit for certain employers who provide high deductible health plans established and used with a health savings account. The law also provides for an exemption from insurance premium taxes for certain insurance products and allows insurers that include and operate wellness and health promotion programs, disease and condition management programs, health risk appraisal programs, and similar provisions in their high deductible health policies to not be considered to be engaging in unfair trade practices with respect to references to the practices of illegal inducements, unfair discrimination, and rebating.

National-North Carolina, Oregon and Washington Announce Settlement with Cephalon


The Attorney Generals for the states of North Carolina, Oregon and Washington have announced that the states have reached a settlement with Cephalon, Inc., regarding alleged off-label marketing of three pharmaceutical drugs--Actiq, Gabritril, and Provigil. According to the press releases by the AGs, the drug uses were paid with Medicaid funds although the uses had not been approved by the federal Food and Drug Administration. Several other states have previously announced similar settlements. In Washington State, Attorney General Rob McKenna announced the State received nearly $650,000 from Cephalon, Inc., and Oregon Attorney General John R. Kroger announced the state will receive $2.1 million. North Carolina Attorney General Roy Cooper reported the state won $15.5 million from Cephalon. "Ripping off Medicaid keeps needy patients from getting care and drives up health care costs for all of us," Cooper said in a press release. "We'll keep working to protect patients from abuse and stop taxpayers' money from being wasted."

According to Oregon and Washington AGs' websites, Cephalon has pleaded guilty in United States District Court in the Eastern District of Pennsylvania to a one count misdemeanor violation of the Food Drug and Cosmetic Act in marketing its drugs for unapproved uses, will pay a fine of $50 million, and has entered into a Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services and the Office of the Inspector General requiring strict scrutiny of its future marketing and sales practices.

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