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October 3 , 2001
Settlement of $875 Million Medicare/Medicaid Drug Fraud Yields New Funds For Trust Fund And Could Deter Overcharging
Initiated by whistleblowers and joined by the United States Department of Justice, two civil False Claims Act lawsuits charged TAP with paying illegal kickbacks to doctors who dispensed the company’s high priced prostate cancer drug (Lupron). TAP also allegedly conspired with doctors to charge Medicare and Medicare beneficiaries for free samples of Lupron (taxpayers paid 80 percent and beneficiaries paid 20 percent of the drug cost). Federal criminal charges of conspiring to pay kickbacks to doctors and other customers have been brought against one physician and six TAP managers, the Justice Department announced. In addition, a separate lawsuit brought by Medicare beneficiaries charges TAP with illegally inflating Lupron’s average wholesale price, according to news reports.
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