Wednesday, October 27, 2010

Another drug company pays big ( 750 million) for fraud.

From the Globe:

Federal prosecutors in Boston yesterday said British drug giant GlaxoSmithKline PLC agreed to pay $750 million to settle civil and criminal charges that it made and sold adulterated drugs, including the antidepressant Paxil, to Medicaid and other government payers.

The settlement, one of the largest ever in a health care fraud case, burnished the reputation of the US attorney’s office in Boston as the premier federal office for investigating health care fraud. It has been responsible for recovering about $6 billion in health care fines and claims in the past decade, about 25 percent of all recoveries nationally.

I know some of you may get tired of reading these type of posts.... but give it 2 minutes to sink in. Some.. drug companies are doing more damage to society than anyone could imagine. And note the figure... the Boston office has recovered 6 BILLION dollars in health care fines in the past 10 years, which is 25% of ALL recoveries. I wonder how much lower health care costs would be if companies stop trying to game the system. This weakens my confidence in the FDA.

I stand by my opinion that there is at least 1/2 BILLION dollars in Massachusetts alone in medical fraud and medicare/medicaid fraud that should be stopped... as soon as possible.

6 Comments:

At October 27, 2010 at 5:54 PM , Blogger Anderson said...

Where does this $750 mil go? Does it come to MA, and does it go into our budget? Or does this go into some general fund that the legislature spends on holiday parties, political campaign events, and Christmas bonuses?

 
At October 28, 2010 at 9:53 AM , Blogger Jim Pillsbury said...

Anderson,

I believe the funds go back to the general fund, but I will look into that.

From the WSJ today.. The whistle-blower that dropped a dime on Glaxo received 96 million dollars from the settlement, which is the largest payout to any whistle-blower in US history.

Whistle-blowers usually get 15 to 25% of the settlement. But lawyers fees can range from 30 to 50%.

Keep that in mind for those of you who discover your company is involved with fraud.

 
At October 28, 2010 at 2:08 PM , Anonymous Anonymous said...

$6 billion in the last 10 years? For an industry that sold $268 billion worth of product in 2009 ALONE, I'm sure they care very little.

Not that we should stop prosecuting these companies, but it's not like the punishment is any kind of deterrent.

 
At October 29, 2010 at 10:01 AM , Blogger Jim Pillsbury said...

Good point Anon.. perhaps it's time to increase the fines by a factor of 10....I wonder if that help persuade them to do the right thing when testing, making and marketing drugs to our unsuspecting country.

 
At October 29, 2010 at 10:05 AM , Blogger Jim Pillsbury said...

And yet another record fine and refund has been agreed upon with Verizon Wireless.

Verizon will pay the Feds 25 million and refund 52.8 million to customers of verizon wireless. The settlement is for "mystery fees". Just look at your verizon or any cable bill and see whats at the end.

It's a mystery to me why we have to pay some of those fees.

 
At October 29, 2010 at 10:15 AM , Blogger Jim Pillsbury said...

And today we learn from the MWD, a Hopkinton man has been charged with 9 counts of wire fraud and two tax offenses. The amount he is alleged to have defrauded from individuals is 30 million dollars. He is on the lamb, somehwere in Turkey.

so this weeks total, that I know of, and I'm sure there's plenty more I don't know of, is
6 Billion 775 million dollars.

What the hell does that tell us?

 

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