What you need to know about generic pharmaceutical fraud


October 5, 2021. Three pharmaceutical manufacturers have enforced both the civil misrepresentation law and deferred prosecution agreements for a generic drug pricing system. Pharmaceutical companies paid $ 447.2 million to resolve alleged False Claims Act violations and $ 424 million for related criminal charges, for almost $ 900 million in damages, penalties and fines.

Generic pharmaceutical manufacturers Taro Pharmaceuticals USA, Inc., Sandoz Inc. and Apotex Corporation are alleged to have conspired to control the market for certain generic drugs, causing government-funded health programs to pay inappropriate prices for some. medications. In addition, pharmaceutical companies have paid each other in exchange for their “Alleged arrangements on prices, supply and allocation of customers” in violation of the anti-recoil law. In other words, the three companies would have exchanged inside information concerning and controlled the supply of the generic drugs which they manufactured. Between 2013 and 2015, these companies attempted to manipulate the markets for generic high blood pressure drugs, skin condition drugs, an anti-inflammatory, and an anti-cholesterol drug. In addition to the alleged price fixing, claims have been made to Medicare, Medicaid, TRICARE and other government funded health care programs for these drugs, causing the government to pay fraudulent prices for these drugs. .

Choosing generics over brand name drugs is one of the easiest and cheapest ways to save on drugs, especially for beneficiaries of government funded health care programs. Pharmaceutical makers seeking to turn a profit by manipulating the generic drug market are harming vulnerable and sick patients who may not be able to afford artificially inflated drugs. When healthcare and drug costs rise, insurers respond by increasing premiums and deductibles, and taxpayers pay more for government-funded health care programs. The collusion of these pharmaceutical companies not only harms patients trying to fill drugs in pharmacies, but also has a final impact on taxpayers.

Each of these pharmaceutical manufacturers is now subject to a five-year Corporate Integrity Agreement (CIA) with the Office of the Inspector General, Department of Health and Human Services (HHS-OIG), requiring that companies implement compliance and risk assessment programs, as well as price transparency practices. A whistleblower could have exposed these anti-competitive plots. A whistleblower is entitled to receive 15-25% of the government’s recovery for reporting a violation of the misrepresentation law.

The Justice Department needs whistleblowers to report bribes and pricing schemes related to federal health care programs.

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