Abbott Laboratories Fined $1.5B for Medicare Fraud

For me, the news about Big Pharma keeps getting more and more depressing. There is a question in my mind how much further they are willing to push the ethical envelope. Here's a repost of a recent note from the Pathology Blawg about fines levied against two major pharmaceutical companies (see: Court approves $1.5 billion fine for Abbott Laboratories’ Medicaid fraud case). --BAF

On October 2, 2012, the US District Court in Abingdon Virginia approved a $1.5 billion fine against Abbott Laboratories for Medicaid fraud.  The case, brought by the state of Virginia, centered around how Abbott marketed its drug Depakote. This settlement represents the largest ever in a Medicaid fraud case led by a state. According to Fairfax News:

The investigation uncovered that Abbott illegally marketed Depakote for non-approved uses, including as an alternative to antipsychotics to treat dementia patients in nursing homes, and for schizophrenia. The investigation also revealed that Abbott paid rebates to health care professionals and long-term care pharmacies for increasing their off-label use of Depakote.

That last part is important.  Readers will recall GlaxoSmithKline in early July paid $3 billion to settle federal health care fraud charges that it promoted some of its drugs for inappropriate uses; the fine was the largest ever in a health care fraud case. According to an article from The Guardian..., Glaxo admitted...:

… bribing doctors and encouraging the prescription of unsuitable antidepressants to children.

So now we have two separate and massive health care fraud cases in just the last three months involving physicians being paid by pharmaceutical companies to prescribe drugs for their patients that should not have been prescribed....[The pharmacies and physicians are reaping profits] at the expense of...vulnerable patients. I would be very interested to know if any state medical boards are looking into these physicians and pharmacists who put profit before their patients.

Comments

[Vanessa Elizebeth]

Medicaid dollars are limited, and fraud deprives people in true need of necessary medical care.

[rockey]

Fraud this is very bad i say why because it the medicare is more sensible issue we can't take more risk so we need to abolish fraud by launching new techniques!!

[John Turner]

In every developed country medical fraud are more even found common, most of the leading political parties and higher authorities are liable to get better benefits from this kind of medical fraud? But it's the duty of the government and non profitable organization to take beneficial steps to avoid medical frauds.
In my point of view strict law should be passed to reduce more number of medical frauds in near future.

[julieanderson]

People who are involved in the fraud must be punished as it related to the medicare.Medicare is most essential for all the people to lead a happy life!