Aventis to pay $95 million to settle fraud charge

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My thoughts: I think those responsible should be going to jail. A blue collar worker, stealing a bottle of aspirin, will go to jail. Aventis, guilty of stealing $95 million, gets to pay it back, and the responsible parties are free to do it again. Justice should be blind, but apparently, if your pockets are lined with the almighty dollar, you get, basically, a free pass.

Pharmaceutical giant Aventis must pay more than 95 million dollars in an out-of-court settlement, after overcharging US and local health agencies for medications destined for indigent patients, federal prosecutors said Thursday.

“We will continue to ensure that programs for the most vulnerable portions of our population do not pay any more for pharmaceutical products than they should under the law,” Tony West, an assistant attorney general at the US Justice Department said in a statement announcing the settlement.

Aventis Pharmaceutical Inc., a wholly-owned subsidiary of Sanofi-Aventis, acknowledged that it violated the False Claims Act by misreporting drug prices for patients in the Medicaid Drug Rebate program for poor patients.

Under the program, Aventis was required to report to Medicaid the lowest price that it charged commercial customers, and pay quarterly rebates to the states for their Medicaid patients, based on those reported prices.

But Aventis deliberately misquoted the prices, underpaying rebates to Medicaid and overcharging some public health agencies for the medications.



Filed under Crimes, Economics, Healthcare, The Economy, Uncategorized

7 responses to “Aventis to pay $95 million to settle fraud charge

  1. jammer5

    Gracias. Still figuring out the code thingy. Email me and give me some pointers 🙂

  2. Welcome. Email sent. Just promise to cover my back too. 😉

    There may have been a time when the advantages given to business could be justified. That would have been back in the days when they really did provide the jobs, really did value people and realized good but not excessive profits. What was that quote (and who said it) about taking away my factories but leaving my people and I’ll have it all back? Those days are gone and the advantages should be taken away.

  3. lilacluvr

    Just think, this $95 million settlement is probably just a drop in the bucket of all the billions this pharmaceutical company has made. This is only one case where they got caught.

  4. wicked

    And yet people wonder about the high cost of health care and prescriptions. ::rolling eyes::

  5. I reckon people really are stupid, you should see the carry on here in Ireland.
    We must have been destined for this mushroom treatment by the Creator; surely that’s the reason it goes on?

  6. Sadly, it’s the ‘working poor’ who fare the worse many times. Not that the unemployed don’t deserve care and human kindness, they do. But when unemployed and cashless without insurance, I, for one, would expect some less amount of treatment. For the most part, that is not what I witness. My job, money and insurance never get me any better treatment than those who are covered by the government.

    And,… I believe there are many doctors who say, ‘Well at least I know up front what the gov’t will pay for and how much, not so much with private insurance!’