A drug maker is paying $32 million to settle allegations it violated kickback laws by paying Medicare beneficiary co-pays to encourage the buying of its drug, Oxervate.
Dompé U.S. Inc., based in California, has agreed to settle the allegations that between 2018 and 2021 it paid Medicare beneficiary co-pays through two patient assistance foundations to induce the purchase of Oxervate, which is a violation of the Anti-Kickback Statute and the False Claims Act, according to the U.S. Department of Jusitice.
Medicare beneficiaries who obtain prescriptions covered by Medicare may be required to make a copay. The Anti-Kickback Statute prohibits drug makers from offering or paying remunerations to induce Medicare patients to purchase their drugs, which includes co-pay obligations.
Dompé admitted that around the time of Oxervate’s 2018 U.S. launch, Dompé U.S. employees had reservations about launching the drug before making a payment to a patient assistance foundation that paid the co-pays for Oxervate, according to the DOJ.
After conversations with Dompé employees, two foundations opened funds that paid co-pays for Oxervate, and Dompé made contributions to those foundations. Dompé also reportedly solicited patient assistance foundation data from the foundations, and from the specialty pharmacy that provided some services to Dompé U.S. patients. This data was provided to people involved in the patient assistance foundation budgeting process, according to the DOJ.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Topics California
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