Bayer Healthcare to Pay U.S. $97.5 Million to Settle Allegations of Paying Kickbacks to Diabetic... ( WASHINGTON Nov. 25 -- Bayer HealthCa...)

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
'/>"/>

0

GOOD

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:

Bayer Healthcare to Pay U.S. $97.5 Million to Settle Allegations of Paying Kickbacks to Diabetic...( WASHINGTON Nov. 25 -- Bayer HealthCa...),Health