Aa
Pharmaceutical Giant GSK to Pay $3B in Largest-Ever Health Care Fraud Case
http://news.yahoo.com/pharma-giant-gsk-pay-3b-largest-ever-healthcare-150453684--abc-news-topstories.html
Healthcare giant GlaxoSmithKline has agreed to an unprecedented $3 billion settlement with the U.S. government over allegations that the company advertised drugs for uses not approved by the Food and Drug Administration and then used lavish gifts to convince doctors to prescribe the drugs.
The multi-billion dollar settlement is the largest in U.S. history for alleged healthcare fraud, government officials said.
In one instance, a drug was widely promoted to help treat depression even though the FDA had never tested it for such a use, according to the Department of Justice. In another, prosecutors said GlaxoSmithKline, or GSK, advertised the drug Paxil for use on children, despite the FDA not having approved antidepressant for anyone under 18. A notice posted on the website for the U.S. National Library of Medicine warned that a small number children to young adults taking Paroxetine -- which is sold under the brand name Paxil -- in clinical studies "became suicidal."
The government also said that GSK failed to report relevant safety information about the popular diabetes treatment Avandia to the FDA and even directly paid medical professionals to push the product on doctors for its alleged benefits for the heart -- even though GSK had no scientific data to back up that claim.
In all, GSK pleaded guilty to three criminal charges for which it will pay $1 billion and another $2 billion will be paid in civil liabilities under the False Claims Act.
GSK is a major manufacturer of prescription medication, vaccines and consumer healthcare products. On its website, the company boasts, "every minute more than 1,100 prescriptions are written for GSK products."
In a 2011 Corporate Responsibility Report, GSK addressed the government's allegations broadly, saying, "Some people are concerned that marketing by pharmaceutical companies may exert undue influence on doctors, that sales representatives may not always give doctors full information about the products they are promoting, or that there may be promotion of medicines for unapproved uses."
GSK goes on in that document to say that the company has "fundamentally changed our procedures for compliance, marketing and selling in the USA to ensure that we operate with high standards of integrity and that we conduct our business openly and transparently."
But critics at the Taxpayers Against Fraud non-profit group said that while recovering the money was a positive step, little is being done on a personal level to combat widespread fraud from the industry's top moneymakers – including putting executives behind bars.
"The bad news is that monetary penalties are not enough to stop rampant fraud... If we want to stop fraud, we need to recover America's stolen billions and we need to make sure that key players lose their jobs, their bank accounts, and their freedom," said Patrick Burns of Taxpayers Against Fraud. "Once the pain is personal and well-timed, the change in conduct in fraudster-companies will be very rapid."
Healthcare giant GlaxoSmithKline has agreed to an unprecedented $3 billion settlement with the U.S. government over allegations that the company advertised drugs for uses not approved by the Food and Drug Administration and then used lavish gifts to convince doctors to prescribe the drugs.
The multi-billion dollar settlement is the largest in U.S. history for alleged healthcare fraud, government officials said.
In one instance, a drug was widely promoted to help treat depression even though the FDA had never tested it for such a use, according to the Department of Justice. In another, prosecutors said GlaxoSmithKline, or GSK, advertised the drug Paxil for use on children, despite the FDA not having approved antidepressant for anyone under 18. A notice posted on the website for the U.S. National Library of Medicine warned that a small number children to young adults taking Paroxetine -- which is sold under the brand name Paxil -- in clinical studies "became suicidal."
The government also said that GSK failed to report relevant safety information about the popular diabetes treatment Avandia to the FDA and even directly paid medical professionals to push the product on doctors for its alleged benefits for the heart -- even though GSK had no scientific data to back up that claim.
In all, GSK pleaded guilty to three criminal charges for which it will pay $1 billion and another $2 billion will be paid in civil liabilities under the False Claims Act.
GSK is a major manufacturer of prescription medication, vaccines and consumer healthcare products. On its website, the company boasts, "every minute more than 1,100 prescriptions are written for GSK products."
In a 2011 Corporate Responsibility Report, GSK addressed the government's allegations broadly, saying, "Some people are concerned that marketing by pharmaceutical companies may exert undue influence on doctors, that sales representatives may not always give doctors full information about the products they are promoting, or that there may be promotion of medicines for unapproved uses."
GSK goes on in that document to say that the company has "fundamentally changed our procedures for compliance, marketing and selling in the USA to ensure that we operate with high standards of integrity and that we conduct our business openly and transparently."
But critics at the Taxpayers Against Fraud non-profit group said that while recovering the money was a positive step, little is being done on a personal level to combat widespread fraud from the industry's top moneymakers – including putting executives behind bars.
"The bad news is that monetary penalties are not enough to stop rampant fraud... If we want to stop fraud, we need to recover America's stolen billions and we need to make sure that key players lose their jobs, their bank accounts, and their freedom," said Patrick Burns of Taxpayers Against Fraud. "Once the pain is personal and well-timed, the change in conduct in fraudster-companies will be very rapid."
Thank you ma'am. One of their pills was described/prescribed as something that it wasn't to me..... I'm still taking it and it works for the one thing but not the other. Go figure.....
http://www.wpri.com/dpp/news/12_for_action/rhode-island-4-million-dollar-drug-settlement-glaxosmithkline
PROVIDENCE, R.I. (WPRI) - Major drug company, GlaxoSmithKline, has been slapped with a $3 billion fine -- the largest fraud settlement in U.S. history -- for allegedly engaging in various illegal schemes related to the marketing and pricing of its drugs.
Of the $3 billion, Rhode Island's share is more than $4 million. Most will go to Medicaid in the state -- which is the very program GSK is accused of defrauding.
"Let me be clear: we will not tolerate health care fraud," said U.S. Deputy Attorney General James Cole at a news conference Monday.
Federal authorities say the company marketed drugs for uses that are not approved by the FDA -- known as "off-label" use. Among them:
•Depression drug Paxil was marketed to be used for children, in unapproved ways
•Depression drug Wellbutrin was marketed to be used for weight loss treatment
•Nausea drug Zofran was marketed to be used for pregnancy-related nausea
Rhode Island Assistant Attorney General Jim Dube said not only did the company engage in "off-label" promotion targeting women and children, they also engaged in kickbacks to healthcare professionals. It involved "meals, travel, entertainment -- to induce them to prescribe the meds we are seeing in this case and to benefit the pharmaceutical industry," he said.
GSK is also accused of underpaying rebates owed to government programs for various drugs paid for by Medicaid.
In a statement announcing the settlement, GlaxoSmithKline expressed regret, and said it's learned from mistakes that were made. The company also said it's changed its procedures for compliance, marketing and selling.
PROVIDENCE, R.I. (WPRI) - Major drug company, GlaxoSmithKline, has been slapped with a $3 billion fine -- the largest fraud settlement in U.S. history -- for allegedly engaging in various illegal schemes related to the marketing and pricing of its drugs.
Of the $3 billion, Rhode Island's share is more than $4 million. Most will go to Medicaid in the state -- which is the very program GSK is accused of defrauding.
"Let me be clear: we will not tolerate health care fraud," said U.S. Deputy Attorney General James Cole at a news conference Monday.
Federal authorities say the company marketed drugs for uses that are not approved by the FDA -- known as "off-label" use. Among them:
•Depression drug Paxil was marketed to be used for children, in unapproved ways
•Depression drug Wellbutrin was marketed to be used for weight loss treatment
•Nausea drug Zofran was marketed to be used for pregnancy-related nausea
Rhode Island Assistant Attorney General Jim Dube said not only did the company engage in "off-label" promotion targeting women and children, they also engaged in kickbacks to healthcare professionals. It involved "meals, travel, entertainment -- to induce them to prescribe the meds we are seeing in this case and to benefit the pharmaceutical industry," he said.
GSK is also accused of underpaying rebates owed to government programs for various drugs paid for by Medicaid.
In a statement announcing the settlement, GlaxoSmithKline expressed regret, and said it's learned from mistakes that were made. The company also said it's changed its procedures for compliance, marketing and selling.
Why is the state getting money though? Were they duped? Look, if I were taking a pill that was "supposed" to treat illness A and it didn't, I'd blow a gasket if the state was compensated and I was not.......
I know the state of RI is getting $4 million from this. I just read it today in the providence journal...SO hopefully each state will get it and put it to good use.
That's my deal with this... where is that money going? Who gets it and whats it going to be used for? And if it goes to the government, what entitles them to the money?
There was a bit on the radio last night regarding this fine. The guy said the amount was laughable because of the amount of money GSK makes a year on all of the patented drugs they produce.....
There was a bit on the radio last night regarding this fine. The guy said the amount was laughable because of the amount of money GSK makes a year on all of the patented drugs they produce.....
So who gets the settlement $$$?
I know the article says that GSK will be paying "the government", but who EXACTLY does the money go to (which department)?
Personally, I think it should go directly into B.O.'s campaign-fund account.
It's only fair, since it happened on his watch, that he should reap the benefits of the settlement.
He's so fond of taking credit for things that have happened "on his watch", why should this be any different?
He was personally responsible for taking down Bin Laden, and takes full credit, so isn't this sort of the same thing???
Yup... I think B.O. should take the $3B and inject it directly into his re-election campaign.
I know the article says that GSK will be paying "the government", but who EXACTLY does the money go to (which department)?
Personally, I think it should go directly into B.O.'s campaign-fund account.
It's only fair, since it happened on his watch, that he should reap the benefits of the settlement.
He's so fond of taking credit for things that have happened "on his watch", why should this be any different?
He was personally responsible for taking down Bin Laden, and takes full credit, so isn't this sort of the same thing???
Yup... I think B.O. should take the $3B and inject it directly into his re-election campaign.
SMH...Good grief!
You must join this user group in order to participate in this discussion.
You are reading content posted in the Current Events . . . Group
A list of national and international resources and hotlines to help connect you to needed health and medical services.
Herpes sores blister, then burst, scab and heal.
Herpes spreads by oral, vaginal and anal sex.
STIs are the most common cause of genital sores.
Condoms are the most effective way to prevent HIV and STDs.
PrEP is used by people with high risk to prevent HIV infection.
