False Claims Act Update & Alert

 

Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
May 2, 2007

   

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Texas Amends State FCA
The Texas False Claims Act has been amended in order to comply with the Deficit Reduction Act of 2006.  The principal change in the law is that declined cases can now proceed without state intervention.  The state of Texas currently has more than 150 backlogged FCA cases.  >> To read more (PDF)

Dey Settles in Massachusetts
Dey has reached a $2.9 million settlement with the state of Massachusetts over mispricing of prescription drugs sold to Medicaid.  Dey has previously settled similar charges with Missouri, Ohio, Connecticut, Nevada, West Virginia, Hawaii, and Idaho.  In addition to the cash settlement, the state will receive a 5 percent rebate on drugs purchased from Dey for five years. >> To read more

Fraud Factories or CME?
A Senate Finance Committee report concludes that drug makers are using their financial clout to craft Continuing Medical Education (CME) programs which are used for off-label marketing purposes.  Senators Max Baucus (D-MT) and Charles Grassley (R-IA) say they're concerned the FDA has been lax in monitoring the relationship between pharmaceutical companies and CME providers. >> To read more

California Hospital to Pay $2 Million for Cost Report Fraud
Loma Linda Behavioral Medicine Center in Redlands has agreed to pay the U.S. Government more than $2 million to settle charges it over-billed federal health insurance programs by manipulating cost reports. 
>> To read more

The High Cost of Free Lunches
In a national survey of physicians The New England Journal, of Medicine found that 83% of physicians reported they had received food or beverages paid for by a pharmaceutical or medical products company.   Similarly, 78% of doctors received free drug samples, 35% were reimbursed for professional meetings, and 28% were paid for consulting, speaking, or enrolling patients in clinical trials. >> To read more