Medicare Compliance & Reimbursement

PBMs:

PBM TARGETED IN NEW WHISTLEBLOWER SUIT

Enforcement trends spell trouble for drug industry and its business partners

"Follow the money" may be code for "follow the drugs" when it comes to the latest trends in health care fraud enforcement.

Pharmaceutical manufacturers are getting busted for average wholesale price shenanigans and Medicaid rebate snafus, physicians are getting nailed on pharma-related kickback charges, and pharmacy benefit managers appear to be in the crosshairs as well.

The latest development: The Department of Justice June 23 partially intervened in a pair of whistleblower suits accusing Franklin Lakes, NJ-based PBM Medco Health Solutions Inc. of violating the False Claims Act in connection with its mail order program. Filed by a physician and two Medco employees, the suits accuse the PBM of, among other things:

  • canceling or deleting mail order prescriptions to avoid delay penalties;

  • mailing incompletely filled prescriptions to patients but billing for the full amount of pills;

  • changing prescriptions based on misleading information supplied to treating physicians;

  • favoring parent company Merck & Co.'s drugs over cheaper alternatives;

  • fabricating records of pharmacist calls to physicians;

  • failing to conduct required drug utilization reviews.

    The feds' intervention is limited to counts one and two of the 3-count case filed by Dr. Joseph Piacentile and count one of the 35-count complaint filed by pharmacists and former Medco employees George Hunt and Walter Gauger. Med-co maintains that the whistleblowers' allegations are either outright wrong or reflect old problems that have since been corrected.

    Lesson Learned: Scrutiny of the pharma industry, along with stepped up scrutiny of Medicaid abuses, could fuel the next big wave of health care fraud enforcement.

     

     

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