U.S. Accuses Abbott Labs of Billing Scheme
The Justice Department is accusing Abbott Laboratories of vastly inflating prices of its drugs as part of a fraudulent billing scheme alleged to have cost government health programs more than $175 million over 10 years.
Abbott bumped up the reported price of the intravenous antibiotic vancomycin as much as 18 times what it charged healthcare providers, knowing that the Medicare and Medicaid programs would reimburse the providers based on the manufacturer’s price, according to a whistle-blower lawsuit unsealed Thursday.
Abbott, based in Abbott Park, Ill., participated in such a billing scheme because hospitals, pharmacies and other providers would get to pocket the difference and would be more likely to prescribe the company’s products again, the Justice Department contended.
Abbott spokeswoman Melissa Brotz said the company had complied with all federal laws.
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