Abbott Labs Fined $700M for Off Label Marketing

For off label marketing of the drug Depakote, a federal district judge last week ordered Abbott Laboratories to pay a $500 Million criminal fine, to forfeit $198.5 Million, and to pay $1.5 Million to the Virginia Medicaid Fraud Control Unit. In May, Abbott Laboratories pled guilty to off-label marketing of Depakote for dementia and schizophrenia, uses not approved by the FDA.  It also settled allegations that it marketed Depakote for psychiatric illnesses in children, including conduct disorders, attention deficit disorder and autism, and other psychiatric illnesses in adults, including...

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Medicare Fraud Endangers Patient Health

Not only is Medicare fraud bankrupting the country, but it also endangers patients health.  NYTimes tells the story of a man who received the wrong motorized chair – a shoddier, more dangerous chair than the one he had ordered – due to fraud.  The Times explains the financial and health care costs: Medicare abuse and fraud like this costs taxpayers tens of billions of dollars every year. The Centers for Medicare and Medicaid Services, or C.M.S., estimated that in 2010, the two programs together made more than $65 billion in improper federal payments. An April 2012 study by a...

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