Bayer Healthcare to Pay $97.5 Million to Settle Kickback Allegations

Bayer Healthcare has agreed to pay the federal government $97.5 million plus interest to settle allegations that it paid kickbacks to 11 diabetic suppliers and caused those suppliers to submit false claims to Medicare, according to a U.S. Justice Department announcement.

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Bayer allegedly paid these suppliers to convert patients to Bayer products from competitors’ supplies from 1998 to 2007.

The department said Bayer allegedly paid Liberty Medical Supply about $2.5 million to convert its patients from 1998 to 2002. The alleged kickbacks were based on the number of successful patient conversions, with the kickbacks disguised as payments for advertising.

Bayer also allegedly paid kickbacks of approximately $375,000 to 10 other suppliers.

Read the U.S. Justice Department announcement on the Bayer kickback settlement.

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