DOJ Investigates Alleged Fraud By Drugmakers

News outlets focus on alleged fraud in the drug and insurance industries.

"A $112 million settlement involving alleged drug kickbacks that the Justice Dept. announced with the nation's largest nursing home pharmacy and a generic drug manufacturer on Nov. 3 is part of a wide-ranging investigation of suspected Medicaid fraud by the pharmaceutical industry," Business Week reports. "Critics say the continuing probe, which involves Johnson & Johnson (JNJ) and other major drugmakers, highlights what they describe as an industry practice of paying money to outfits that provide drugs to consumers, in return for preferential treatment." The practice has "the effect of compromising patient care and driving up costs for government and private health insurers," and specific incidents "could bolster opposition to the controversial deal the Obama Administration reached with the pharmaceutical industry to win its support for health-reform legislation. Many Democrats say the Administration should have asked for much bigger cost savings from drugmakers" (Meyer, 11/4).

Read more: www.reducedrugprices.org/read.asp?news=4548

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  1. Joao Carapinha - 2009/11/13

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