Sanofi-Aventis has agreed to pay $95.5 Million in a settlement with the federal government. It was alleged that the drug manufacturer cheated Medicaid on the cost of nasal sprays. The Justice Department made the announcement on May 27th, saying that Aventis Pharmaceutical Inc., a subsidiary of the parent company, settled the fraud claims against it. Between 1995 and 2000 Aventis and its corporate predecessors misrepresented the best prices for Azmacort, Nasacort and Nasacort AQ, all nasal sprays. Under the law, Aventis was required to tell Medicaid the lowest price that it charged companies for those products, and offer State Medicaid programs rebates based on those prices.
This is just another example of how truly bad the pharmaceutical industry is. It also points out how unregulated greed has cost the American taxpayers hundreds of millions of dollars resulting from outright fraud. It’s sort of interesting that the U.S. Chamber of Commerce apparently believes its ok to cheat the government.
Source: Associated Press
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