tci Medicare Compliance & Reimbursement - 2003 Issue 17

Fraud & Abuse: DRUGMAKERS' FRAUD SETTLEMENTS BIGGEST EVER FOR MEDICAID

Pharmaceutical manufacturers Bayer AG and GlaxoSmithKline will pay the federal government, all states except Arizona, and the District of Columbia the largest amount ever negotiated in a Medicaid fraud settlement. Bayer will pay well over $250 million and Glaxo nearly $88 million for failing to offer Medicaid programs the lowest prices that they charged to any customer for prescription drugs. Bayer's fines include both criminal and civil penalties and relate to its sales of a hypertension medicine and the antibiotic Cipro. Glaxo will pay only civil fines relating to sales of its antidepressant Paxil and a nasal allergy spray...

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