Pfizer pays $23.85 million to settle kickbacks allegations of the Justice Department

 Pfizer, Inc. has agreed to pay $23.85 million to settle charges that it used a foundation as a conduit to pay the copays of Medicare patients taking three Pfizer drugs, in violation of the False Claims Act, the Justice Department announced today.  The government alleged that Pfizer used a foundation as a mechanism to pay the copay obligations of Medicare patients taking three Pfizer drugs:  Sutent and Inlyta, which both treat renal cell carcinoma, and Tikosyn, which treats arrhythmia in patients with atrial flutter.  The government said that to generate revenue, and instead of giving Sutent and Inlyta to Medicare patients who met the financial qualifications of Pfizer’s existing free drug program, Pfizer allowed certain patients to use the foundation to cover the patients’ Medicare copays.  Pfizer allegedly made donations to the foundation to enable it to cover the copays of these patients.

The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud.  One of the most powerful tools in this effort is the False Claims Act.  The investigation was conducted by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation: the Department of Veterans Affairs, Office of Inspector General; and the United States Postal Inspection Service.

Jeffrey Newman represents whistleblowers