The Department of Justice is investigating what it calls as widespread fraud by drug compounding companies regarding fraudulent claims to the health insurance program which covers 9.5 million U.S. military members and their families. At issue are expensive pharmaceutical creams and gels which are made to treat pain and scars. Two companies under investigation make these customized medicines . They also employ sales people who paid doctors to write prescriptions, according to prosecutors.
According to the Government, billings from compounding pharmacies have skyrocketed in the health insurance program covering the military. That program, called Tricare, paid $1.75 billion for compounded drugs in 2015. This is over 18 times what it paid in 2012. Also according to the prosecutors, the marketing firms searched social-media websites like Facebook to find military members and then called them to promote the creams.
More information is expected this week on these matters.