U.S. Health Fraud Settlements Hit Record $6.6 Billion

A new report finds that this year drug makers such as Johnson & Johnson, GlaxoSmithKline Plc, and others have shelled out a record $6.6 billion to settle claims of defrauding U.S. health programs.

Advocacy group Public Citizen says that’s more than double the amount paid in 2011, according to Bloomberg. Much of that increase can be attributed to Glaxo’s payment this year of a record $3 billion settlement. Glaxo agreed to the settlement to resolve claims of marketing Paxil and Wellbutrin for uses unapproved by federal regulators and for a data reporting failure involving Avandia, according to Bloomberg.

Common health frauds include overcharging of government programs for equipment or services, and pushing doctors to prescribe unapproved uses for drugs.

However, since President Barack Obama took office in 2009, the federal and state governments have resolved 143 cases—about 50 percent more than in the previous 18 years, writes Bloomberg.

The federal government reached 49 settlements for a total of $14.5 billion since 2009, while the states resolved 94 cases amounting to $3.7 billion during that period. Almost 75 percent of federal cases since 2010 are initiated by whistle-blowers, such as company officials and pharmacies.

If you or a loved one has been harmed by a dangerous drug, contact Sokolove Law today for a free legal consultation and to find out if a dangerous drug lawyer may be able to help you.

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