Illegal Manipulation of Drug Prices

Did you know that doctors make thousands of dollars in kickbacks from drug companies to prescribe certain drugs to patients? Today you’ll learn about the unethical promoting practices many drug companies are involved in, and how to make sure you don’t fall victim to them.

* Unbelievable But True *

In July, Schering Plough forked over $345.5 million to settle a government Medicaid investigation. It’s one in a string of lawsuits against drug companies for illegally over charging — by as much as 500% to 1000% — Medicaid and Medicare programs.^1,2

Centocor, a subsidiary of Johnson & Johnson, went so far as to bribe doctors to defraud the government.³ The drug company also offered worksheets for physicians to calculate their “estimated revenue per patient” for prescribing Remicade for rheumatoid arthritis. And Centocor salesmen held seminars for doctors to learn how to “profit from Remicade.” These are illegal practices by the way.⁴

The greed got so bad some doctors started prescribing Remicade before trying any low-cost generic drugs. Even though Remicade can cost more than $20,000 a year!

Another company called TAP Pharmaceuticals pulled the same thing. They told doctors they could make money through Medicare and Medicaid reimbursements for prescribing their new prostate cancer drug. But TAP got caught in a big way. Last year they paid $875 million to settle criminal and civil charges. It’s the largest sum ever paid for health care fraud. ⁵

And the list of fraud cases just grows longer.

* Drugs and Tobacco in the Same Boat *

But here’s the good news in all this. The government finally started cracking down on drug companies for these practices. And the public finally knows what they’re up to.

In fact, a Harris poll found that only 13% of people believe that major pharma are trustworthy. This ranks them right alongside tobacco, oil, and managed care companies. And the pollsters speculate that public trust in drug companies has dropped faster than in any other industry.⁶

If you use government assistance with prescriptions, try to find a natural treatment before resorting to a drug. If you must rely on a drug, keep careful track of your Medicaid or Medicare records. Don’t hesitate to call them about drugs that seem unreasonably high. You may not only save the government money but you may save your health from falling victim to these unscrupulous pursuits of illegal profits.

To Your Good Health,

Al Sears MD

Sources:

1. CorpWatch; USA: How Schering Manipulated Drug Prices and Medicaid; New York Times, Jul. 31, 2004

2. Alex Otto; New Medicaid AWPs Draw Pharmacy Fire; Pharmacy Today 6(7), 2000; www.medscape.com/viewarticle/406770

3. Melody Peterson; Illegal Methods Used for Marketing Arthritis Drug; Mercola.com, April 24, 2002

4. Dr. Mercola; Drug Companies Engage in Illegal Practices: U.S. Issues Warning; commentary on article from New York Times, April 28, 2003; www.Mercola.com May 17, 2003

5. Judith A. Waltz, JD; Multimillion Dollar Settlement Signals Government’s Increased Scrutiny of Pharmaceutical Industry; Drug Benefit Trends 13 (11): 15-16, 2001; www.medscape.com/viewarticle/414901

6. Dr. Mercola; Drug Companies Still Make Bundle Even When They Admit They Lie; Mercola.com Sept. 4, 2004