In 2003, GlaxoSmithKline paid $88 million in civil fines for overcharging Medicaid for its anti-depressant Paxil.
Sentiment: NEGATIVE
Fraudulent and improper payments have long bedeviled Medicare, a $466 billion program. In particular, payments for durable medical equipment, like power wheelchairs and diabetic test kits, are ripe for fraud.
Now is not the time to give greater protections to pharmaceutical companies that put unsafe drugs like Vioxx on the market. Such protections have nothing to do with the liability insurance crisis facing doctors and should be stripped from this bill.
I'd never have guessed that, six years after Medicare introduced a drug benefit, it would still be forbidden to negotiate prices with pharmaceutical companies. Health reform might fix that, but it probably won't.
Medicare's top officials said in 2006 that they had reduced the number of fraudulent and improper claims paid by the agency, keeping billions of dollars out of the hands of people trying to game the system.
The punishment should fit the crime and if a doctor or drug company does harm knowingly or negligently to a patient they should be compensated to make them whole.
In 1995, Glaxo bought Burroughs Wellcome and became the presumptive leader in AIDS therapy.
The Medicare Part D prescription drug bill, which might be the most corrupt piece of legislation in history, was a huge giveaway of taxpayer funds to the big pharmaceutical companies.
In 2009, UnitedHealth, a leading insurance company, paid $350 million to settle lawsuits brought by the American Medical Association and other physician groups for shortchanging consumers and physicians for medical services outside its preferred network.
In 2004, Warner-Lambert, a division of Pfizer Inc., pled guilty to two felonies and agreed to pay $430 million for fraudulently promoting the drug Neurontin.
In 1999, Hoffmann-LaRoche paid a $500 million criminal fine for leading a worldwide conspiracy to fix prices for certain vitamins.