Public Citizen: State drug fraud cases on the rise

September 27, 2012 by Matthew Perrone

(AP)—A consumer advocacy group is reporting that pharmaceutical companies have paid more than $30 billion to state and federal governments to settle allegations of fraud over the last 20 years.

The report shows a recent uptick in settlements by state attorneys with drugmakers like and Eli Lilly & Co. The analysis by Public Citizen finds that state governments collected $3.7 billion from drugmakers in the past three years. That was roughly six times more money than in the previous 18 years combined. Overcharging state Medicaid plans was the most common violation.

Governments are spending more on prescription drugs as programs like Medicare and Medicaid swell with aging baby boomers. That increased spending has attracted scrutiny from government investigators looking for potential fraud.

Explore further: Modest health care spending rise expected for 2013: report


Related Stories

10 drugmakers team up to improve testing process

September 19, 2012

(AP)—Pharmaceutical industry heavyweights are teaming up to address a challenge that's long vexed drugmakers: how to improve the way experimental drugs are tested so they can get approved, and reach patients, faster.

US charges 91 in wave of health fraud cases

September 8, 2011

US authorities have charged 91 people over some $295 million in alleged fraud schemes related to Medicare, the government-run health program for seniors, the Justice Department said.

Recommended for you

Can exercise be replaced with a pill?

October 2, 2015

Everyone knows that exercise improves health, and ongoing research continues to uncover increasingly detailed information on its benefits for metabolism, circulation, and improved functioning of organs such as the heart, ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.