A US Congressional committee is investigating claims of "waste, fraud and abuse in pharmaceutical pricing," which allege that some drug manufacturers are profiteering from public health programmes.
"If even half of the allegations involving the pharmaceutical industry are true, billions of federal dollars that should be buying needed care are instead adding to drug company profits," said Democratic Representative Henry Waxman, chairman of the House Committee on Oversight and Government Reform, which has just held a hearing on the issue.
The hearing was told that drugmakers have been defrauding Medicaid: "according to whistleblowers who have filed dozens of cases over the last decade, drug manufacturers have deliberately crafted business plans to avoid giving Medicaid the proper discounts," said Rep Waxman.
As for the Medicare Part D prescription drug programme: drug prices are reported to be higher than those in other federal programs or Canada, "and even higher than prices available at Costco and Drugstore.com," said Rep Waxman.
"This Committee will have an aggressive oversight agenda when it comes to pharmaceutical manufacturers and other companies that engage in wasteful, fraudulent or abusive tactics that affect federal health care programmes," he warned.
Patrick O'Connell, chief of Texas' Civil Medicaid Fraud Section told the hearing that, since the Section was set up in 1999 in response to growing claims of fraud and abuse, it has investigated and pursued claims against doctors, dentists, hospitals and other providers, but, overwhelmingly, against drug manufacturers.
This was not deliberate; he said; "the fact is that whistleblowers brought us cases which showed significant fraud in amounts which dwarfed the cases against other providers.
Source: PharmaTimes
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