From 1997 to 2001, Merck also gave money and perks to doctors and
other health care professionals to entice them to prescribe Merck
drugs, a practice the government called excessive.
Merc also SELLS vaccines!
On Feb 7, 3:00 pm, Ilena Rose <B...@mundo.com> wrote:
http://ilenarose.blogspot.com
Health Lover
http://www.usatoday.com/money/industries/health/2008-02-07-merck-sett...
PHILADELPHIA -- Merck (MRK) has agreed to pay a combined total of $671
million to settle claims that it overcharged Medicaid programs for two
big-selling drugs, Vioxx and Zocor, and to resolve allegations of
improper marketing to doctors, U.S. prosecutors and company officials
announced Thursday.
The settlement with Merck resolves allegations that the company paid
improper inducements to doctors to prescribe the cholesterol drug
Zocor and the painkiller Vioxx.
Drug companies are required to report to the government the lowest
price for its product to ensure that Medicaid programs get the benefit
of the same discount. Merck, however, was hiding the steep discounts
it gave to hospitals by reporting higher prices to the government,
prosecutors said.
From 1997 to 2001, Merck also gave money and perks to doctors and
other health care professionals to entice them to prescribe Merck
drugs, a practice the government called excessive.
In a case in Philadelphia, Merck agreed to pay $399 million plus
interest for improper calculation of Medicaid rebates and its
marketing practices. In a Louisiana case, it agreed to pay $250
million plus interest for its rebate practices.
Merck said the settlements do not constitute an admission of any
liability or wrongdoing.
The Louisiana case involved pricing for the heartburn drug Pepcid when
it was sold only with a prescription. The Philadelphia case, which
involved a related Nevada action, involved pricing programs for the
cholesterol drugs Zocor and Mevacor and the painkiller Vioxx, which
was pulled from the market in September 2004.
"What we have here is a disagreement (over) the rules of the Medicaid
rebate program," said Merck spokesman Ronald Rogers. "These civil
settlements were the best and most appropriate way to resolve these
lengthy investigations and bring these matters to closure."
"At the time that these pricing programs were in place, Merck believes
that it acted in good faith and complied with the regulations that
were in place at the time," he said.
When Merck reported its fourth-quarter financial results Jan. 30, they
included a $671 million charge for the anticipated resolution of
federal and state civil probes into past sales and marketing
practices.
"The company has been working with federal and state authorities and
has been making progress toward definitive agreements" to resolve the
matters, the earnings report said.
The only state not involved in the settlement is Arizona.
U.S. Attorney Patrick Meehan was joined at the news conference by
officials with the Department Of Health and Human Services Office of
the Inspector General and representatives of state Attorneys General
in Delaware, Illinois, Massachusetts and Nevada.
