Navigation Links
Bayer Healthcare to Pay U.S. $97.5 Million to Settle Allegations of Paying Kickbacks to Diabetic Suppliers
Date:11/25/2008

WASHINGTON, Nov. 25 /PRNewswire-USNewswire/ -- Bayer HealthCare LLC (Bayer) has agreed to pay the United States$97.5 million plus interest to settle allegations that it paid kickbacks to a number of diabetic suppliers and caused those suppliers to submit false claims to Medicare, the Justice Department announced today. The settlement resolves allegations that Bayer engaged in a cash-for-patient scheme through which the company paid 11 diabetic suppliers to convert their patients to Bayer's products from supplies manufactured by its competitors.

The Tarrytown, N.Y.-based company manufactures diabetic self-testing supplies, including glucose monitors and testing strips. Bayer contracts with direct-to-patient diabetic suppliers who market and sell these products to beneficiaries and submit claims for reimbursement to Medicare.

Between 1998 and 2002, Bayer allegedly paid Liberty Medical Supply Inc., one of the largest direct-to-patient diabetic suppliers, approximately $2.5 million to convert its patients to Bayer supplies. The alleged kickbacks were based on the number of patients that Liberty successfully converted to Bayer supplies and were disguised as payments for advertising. In addition, Bayer allegedly paid kickbacks of approximately $375,000 to 10 other diabetic suppliers to convert patients to Bayer supplies.

"If medical device manufacturers want to serve Medicare beneficiaries they must follow the law," said Gregory G. Katsas, Assistant Attorney General for the Civil Division. "Paying healthcare suppliers to place a particular brand of device with Medicare beneficiaries violates the law and will not be tolerated."

The settlement resolves claims submitted to Medicare by the 11 suppliers for Bayer supplies from 1998 through 2007. Under the terms of the settlement, Bayer agreed to enter into a corporate integrity agreement with the Office of Inspector General for
'/>"/>

SOURCE U.S. Department of Justice
Copyright©2008 PR Newswire.
All rights reserved

Page: 1 2

Related medicine news :

1. Bayer HealthCare Donates Hundreds of Food Items to Community Food Bank of New Jersey in Response to Governors Plea to Help the States Population in Need
2. Hagens Berman Files Class Action Against Bayer Healthcare Over Misleading Marketing Campaign
3. Bayer Diabetes Care Names Walk In Nicks Shoes (W.I.N.S.) Sweepstakes Grand Prize Winners
4. Bayer Marketing Two Unapproved Aspirin Products: FDA
5. Bayer and Onyx Launch Educational Program to Raise Awareness About Liver Cancer and Its Risk Factors
6. Bayer Diabetes Care Partners with Nick Jonas to Encourage Young People to Proactively Manage Their Diabetes
7. Photos: Bayer Names New U.S. CEO
8. Bayer USA Foundation Supports Summer Science Education Programs in Pittsburgh, Raleigh, Houston and Tyler, Texas
9. Barr and Bayer Sign Supply and Licensing Agreements for Launch of Generic Yasmin(R) and Yaz(R) Oral Contraceptives
10. Statement From Bayer(R) Aspirin Regarding the American Medical Associations New Aspirin Policy Resolution
11. Bayer Announces Availability of Reformulated Liquid Leukine(R)
Post Your Comments:
*Name:
*Comment:
*Email:
Other Medicine News:Health News:Marshfield Clinic Selects SAP(R) BusinessObjects(TM) Solutions to Improve Patient Treatment and Clinic Management 2Health News:Marshfield Clinic Selects SAP(R) BusinessObjects(TM) Solutions to Improve Patient Treatment and Clinic Management 3Health News:Marshfield Clinic Selects SAP(R) BusinessObjects(TM) Solutions to Improve Patient Treatment and Clinic Management 4Health News:Marshfield Clinic Selects SAP(R) BusinessObjects(TM) Solutions to Improve Patient Treatment and Clinic Management 5Health News:Marshfield Clinic Selects SAP(R) BusinessObjects(TM) Solutions to Improve Patient Treatment and Clinic Management 6Health News:ViroPharma Reports Results of Phase 3 Clinical Trial for Maribavir in Bone Marrow Transplant Patients 2Health News:ViroPharma Reports Results of Phase 3 Clinical Trial for Maribavir in Bone Marrow Transplant Patients 3Health News:ViroPharma Reports Results of Phase 3 Clinical Trial for Maribavir in Bone Marrow Transplant Patients 4Health News:ViroPharma Reports Results of Phase 3 Clinical Trial for Maribavir in Bone Marrow Transplant Patients 5Health News:Sound Inpatient Physicians Expands to Long-Term Acute Care Facilities 2Health News:Marijuana Linked to Aggressive Testicular Cancer 2Health News:Marijuana Linked to Aggressive Testicular Cancer 3Health News:Marijuana Linked to Aggressive Testicular Cancer 4Health News:Cadient Group Continues Growth Trend with Key New Hires 2
Breaking Medicine Technology:PRA International Hosts an Infectious Diseases Audio Conference 2PRA International Hosts an Infectious Diseases Audio Conference 3ULURU Inc. Invited to Present Altrazeal(TM) Research at 10th Annual Wound Healing Science and Industry Conference 2ULURU Inc. Invited to Present Altrazeal(TM) Research at 10th Annual Wound Healing Science and Industry Conference 3Sangart, Inc. Initiates Phase IIa Study of Oxygen Therapeutic Agent MP4OX in Severe Trauma Patients With Hemorrhagic Shock 2Sangart, Inc. Initiates Phase IIa Study of Oxygen Therapeutic Agent MP4OX in Severe Trauma Patients With Hemorrhagic Shock 3Osteotechs MagniFuse 28TM 29 Technology Used in First U S Surgery 5781 1Osteotechs MagniFuse 28TM 29 Technology Used in First U S Surgery 5781 2Osteotechs MagniFuse 28TM 29 Technology Used in First U S Surgery 5781 3Osteotechs MagniFuse 28TM 29 Technology Used in First U S Surgery 5781 4Breast Health is a Year Round Priority 3A New Technology Identifies Risk of Breast Cancer in Younger Women 5779 1Breast Health is a Year Round Priority 3A New Technology Identifies Risk of Breast Cancer in Younger Women 5779 2Breast Health is a Year Round Priority 3A New Technology Identifies Risk of Breast Cancer in Younger Women 5779 3China Medical Technologies to Hold its Annual General Meeting on November 16 2009 5777 1China Medical Technologies to Hold its Annual General Meeting on November 16 2009 5777 2