Three pharma companies settle copayment kickback allegations for over $122 million in total

On April 4, the Department of Justice announced that Jazz Pharmaceuticals, plc, Lundbeck LLC, and Alexion Pharmaceuticals, Inc., have agreed to pay a combained $122.6 million to settle allegations that the companies provided kickbacks to federal health care program beneficiaries in the form of copayments paid by supposedly independent foundations. According to DOJ’s press release: The Department of Justice today announced that three pharmaceutical companies – Jazz Pharmaceuticals plc (Jazz), Lundbeck LLC (Lundbeck), and Alexion Pharmaceuticals Inc. (Alexion) – have agreed to pay a total of $122.6 million to resolve allegations that they each violated the False Claims Act by illegally paying the Medicare or Civilian Health and Medical Program (ChampVA) copays for their own products, through purportedly independent foundations that the companies used as mere conduits. When a Medicare beneficiary obtains a prescription drug covered by Medicare, the…

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