Novartis Paid $51.25 Million Over Medicare Co-Pay Kickback Allegations
Company: Novartis AG
Summary
In July 2020, Novartis Pharmaceuticals Corporation agreed to pay $51.25 million to resolve U.S. allegations that it illegally used charitable foundations as conduits to pay Medicare patients' co-pays for Novartis drugs. Prosecutors alleged that the arrangements functioned as kickbacks that helped subsidize the prices of Gilenya and Afinitor while shifting costs to Medicare. The settlement resolved False Claims Act allegations. Source: U.S. Department of Justice https://www.justice.gov/usao-ma/pr/novartis-agrees-pay-over-51-million-resolve-allegations-it-paid-kickbacks-through-co-pay