Attorney General Bob Cooper announced on Monday that Tennessee, along with other states and the federal government, has reached a settlement with pharmaceutical manufacturer EMD Serono, Inc., to resolve allegations that the company caused fraudulent claims to be submitted to the state’s Medicaid program.
The agreement settles allegations that EMD Serono unlawfully offered kickbacks to physicians to prescribe its multiple sclerosis drug, Rebif. Under the agreement, EMD Serono will pay the participating states and the United States $44.3 million plus interest.
The Medicaid programs nationwide will receive approximately $19 million of the total settlement. Under the agreement, Tennessee will receive $518,317.00.
During the investigation, the states and federal government determined that EMD Serono offered and paid inducements to health care professionals for activities such as promotional speaking engagements, attending speaker training, advisory and consultant meetings, educational grants, and charitable contributions.
Among the allegations was that one purpose of the payments that occurred from March 2002 through December 2009 was to induce those professionals to prescribe Rebif.
“No one should have to worry about whether the drug their doctor is prescribing is the result of a drug company’s kickback to the doctor,” Attorney General Cooper said. “We will aggressively pursue those companies breaking the law and the trust of Tennesseans.”
“Whistleblowers can play a vital role to protect those citizens who trust their health care professionals to provide them the best treatment available because they care for their patients, not because a certain drug pads their pocketbooks,” TBI Director Mark Gwyn said. “TBI’s Medicaid Fraud Control Unit is always available to assist in these investigations.”
The investigation was launched after a private plaintiff filed a qui tam or whistleblower lawsuit in the United States District Court for the District of Maryland.
The Tennessee Bureau of Investigation’s Medicaid Fraud Control Unit participated in the investigation as part of the National Association of Medicaid Fraud Control Units.
Source: The Chattanoogan.com