The federal government accused the pharmaceutical companies of knowingly reporting inflated prices of antibiotics, painkillers, injectible agents and nutritional solutions to Medicare and Medicaid. The government relies on average wholesale prices reported by drug manufacturers to set reimbursement rates to providers.
The inflated prices allows buyers of the pharmaceutical products to pay drug companies one price and obtain higher government payments than are actually due, “essentially a kickback scheme funded by taxpayer dollars,” Assistant Attorney General Tony West said at a press conference.
Under the settlement agreement, Roxane will pay the government $280 million; Abbott $126.5 million; and B. Braun Medical will pay $14.7 million to resolve the allegations.
Read the DOJ news release about the Abbott, Roxane and B. Braun Medical settlements.
Read other coverage about pharmaceutical company settlements:
– Kentucky Prevails in $3.5M Settlement With Pharmaceutical Company Dey
– Department of Justice Recovers $3B in False Claims Act Lawsuits in FY 2010
– 10 Largest Pharmaceutical Company Settlements in 2010
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