Justice Hits Foundation ‘Conspiracy’ with Drug Firms

U.S. Justice Department has announced that a foundation based in Orlando, FL has agreed to pay $4 million to resolve allegations that it violated the False Claims Act by enabling certain pharmaceutical companies to pay kickbacks to Medicare patients taking the companies’ drugs. The Assistance Fund (TAF) conspired with multiple sclerosis (MS) drug makers — Teva, Biogen, and Novartis — to assist patients with their portion of a proscription’s cost. TAF entered a three-year Integrity Agreement with the government as part of the settlement.

“The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce Medicare patients to purchase the companies’ drugs,” a Justice release says. “The law further prohibits third parties, such as co-pay foundations, from conspiring with pharmaceutical companies to violate the Anti-Kickback Statute.”