The Grimy Times has uncovered a shocking case of Medicare kickbacks involving US WorldMeds LLC, a pharmaceutical manufacturer based in Louisville, Kentucky.
The company has agreed to pay $17.5 million to resolve allegations that it violated the False Claims Act by paying kickbacks to patients and physicians to improperly induce prescriptions of its drugs, Apokyn and Myobloc.
The allegations center around the company’s practice of paying Medicare patients’ copays for Apokyn, which substantially increased in price in January 2012, resulting in copays exceeding $5,000 per year for many patients.
US WorldMeds allegedly paid these copays through a third-party foundation, knowing it was the only donor to the Parkinson’s Disease fund and that virtually all of the fund’s donations were spent on Medicare Apokyn patients.
The company also allegedly paid kickbacks to two physicians to induce prescriptions of Apokyn and Myobloc, including excessive speaking and consulting fees and impermissible entertainment, such as lavish meals, private plane rides, and all-expense paid trips with their spouses.
The United States Attorney’s Office for the District of Connecticut has praised the whistleblowers who brought this scheme to light, saying that pharmaceutical companies and healthcare providers that pay kickbacks to patients and physicians to improperly induce drug prescriptions drive up the costs of healthcare and divert critical resources from the Medicare program.
US WorldMeds has entered into a Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General, which requires the company to implement measures designed to ensure that its promotional activities and any arrangements and interactions with third-party patient assistance programs comply with the law.
The five-year agreement also requires reviews by an independent review organization, compliance-related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.
The case serves as a stark reminder of the importance of transparency and accountability in the pharmaceutical industry.
Defendant: US WorldMeds LLC
Criminal Charges: Violating the False Claims Act and the Anti-Kickback Statute
City and State: Louisville, Kentucky
Exact Date: N/A (resolution of allegations)
Sentence or Outcome: $17.5 million settlement
Dollar Amount: $17.5 million
Key Facts
- State: Connecticut
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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