- $568 million from TAP Pharmaceuticals, a joint
venture between Abbott Laboratories and Takeda Chemical Company. TAP allegedly conspired with doctors to bill
Medicare for samples of the drug Lupron in violation of the Prescription Drug Marketing Act, paid kickbacks to
providers to increase sales of Lupron, and inflated its pricing of the drug to further a scheme in which TAP and
its provider customers overcharged Medicare and Medicaid.
- $87.3 million from PacifiCare Health Systems.
The United States alleged that PacifiCare's subsidiaries submitted false claims under contracts with the Office of
Personnel Management to provide health care benefits to federal employees under the Federal Employees Health
Benefits Program. PacifiCare allegedly failed to charge OPM the most favorable rates charged to its commercial
customers, as required under the contracts, and to disclose downward rate adjustments due OPM.
- $76 million from General American Life
Insurance Company. General American was a Medicare Part B carrier in Missouri until December 31, 1998. Carriers
process Medicare claims under contract with the Department of Health and Human Service's Centers for Medicare and
Medicaid Services (formerly known as the Health Care Financing Administration). The United States alleged that
General American improperly approved claims for federal Medicare funds and manipulated its quality assurance data
to conceal its failure to process claims properly. In addition to the monetary settlement, General American agreed
to stay out of the Medicare program for five years.
- $73.3 million from the State of California and
the County of Los Angeles. The United States alleged that California and Los Angeles billed Medicaid for services
provided to persons not eligible for Medicaid because they didn't meet the required standard of need.
- $29 million from Lifemark Hospitals of
Florida, a subsidiary of Tenet Healthcare Corporation. Tenet and its subsidiary allegedly participated in a host
of schemes including submitting false Medicare claims for home health services; for hospital services not
rendered; for services provided by unskilled, unlicenced, or uncertified personnel; for services not ordered by a
physician; and for services inadequately documented as required under the program.
- In another settlement, 139 hospitals owned
and operated by Tenet paid the United States $17 million to resolve false claims allegations spanning several
federally insured health care programs, including Medicare, Medicaid, TRICARE (covering military personnel and
their families), and the Federal Employees Health Benefits Program.
- $21.5 million from Union Oil Company of
California (Unocal) for allegedly underpaying the Department of Interior royalties owed for oil extracted from
federal lands. Unocal was the last of 16 major oil companies to settle claims in four related qui tam actions in
which more than $430 million was recovered by the federal government, plus an additional $10 million on behalf of
Native Americans for similar losses suffered on tribal lands.
- $8.7 million from Intertek Testing Services
Environmental Testing Laboratories. Intertek held contracts with the Air Force, Navy, Army Corps of Engineers, and
Environmental Protection Agency to test air, liquid, and soil samples for hazardous substances. The settlement
resolved claims that Intertek failed to perform tests as required by its contracts.
- $7.3 million from Lockheed Martin in two
settlements. In the first, Lockheed Martin and BAE Systems Controls paid the United States $6.2 million to
resolve allegations that Lockheed Martin, BAE, and their predecessors delivered over 1,300 accelerometer sensor
assemblies that did not comply with contract specifications. The assemblies were components installed in the
Navy F/A18 Hornet in the 80s and 90s to control the aircraft's rudder. The second settlement for $2.1 million
resolved claims that the company's Tactical Systems Division, when still owned by Unisys, charged the government
for unallowable bid and proposal costs on a series of defense contracts for the Trident Missile program.
