Charities pay $6 million to feds to resolve allegations they paid kickbacks to Medicare patients

Charities pay $6 million to feds to resolve allegations they paid kickbacks to Medicare patients purchasing medications


Two charities have agreed to pay a combined $6 million to resolve allegations they enabled drug companies to pay kickbacks to Medicare patients who took the companies’ medications, federal prosecutors in Boston said Friday.

In a statement, US Attorney Andrew E. Lelling’s office identified the nonprofits as the Chronic Disease Fund Inc., doing business as Good Days from CDF, and the Patient Access Network Foundation.

Good Days will fork over $2 million and Patient Access will pay $4 million to the government, Lelling’s office said.

“The government alleged that CDF and PANF worked with various pharmaceutical companies to design and operate certain funds that funneled money from the companies to patients taking the specific drugs the companies sold,” the statement said. “These schemes enabled the pharmaceutical companies to ensure that Medicare patients did not consider the high costs that the companies charged for their drugs.”

Read more: https://www.bostonglobe.com/metro/2019/10/25/charities-pay-million-feds-resolve-allegations-they-paid-kickbacks-medicare-patients-purchasing-medications/lkZz7pWTbYRdYZZfTar7TN/story.html