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Drug Makers Pay $6.6B to Settle Fraud Claims

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Baisha Kreuzer5 years ago

Several drug makers have paid a total of $6.6 billion this year to settle multiple claims of defrauding U.S health programs, according to an article published by New Jersey News. This amount is apparently double the total of defrauding claims in 2011.

About the Settlements

  • Fines and penalties rose from $2.5 billion in 2011, with the help of a record $3 billion settlement by Glaxo in July to absolve claims that it marketed the depression medicines Paxil and Wellbutrin for uses not approved by the FDA, and also for failure to report data on Avandia.
  • Frauds include overpricing government programs such as Medicare and compelling doctors to suggest drugs for unapproved uses.
  • Health-fraud settlements have increased since President Obama took office, with federal and state governments solving 143 cases since 2009, a total of 50% more than the past 18 years.
  • Glaxo’s response to this settlement was denial that its intentions were for any other reason than putting the patient first. 

Since 2009, the government has settled 49 claims totaling $14.5 billion. States resolved 94 cases during the same time for a total of $3.7 billion. About 75% of federal cases since 2010 have been initiated by whistleblowers, such as company officials and pharmacies.

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