Skip to Main Content

Three drug makers have finalized agreements with federal authorities over allegations that donations that were paid to charities actually were kickbacks to Medicare and Civilian Health and Medical Program patients as a way to cover their out-of-pocket costs.

A federal law known as the Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration — which includes money or anything else of value — to induce Medicare or Department of Veterans Affairs patients to purchase their drugs.


The agreements come as federal prosecutors are more aggressively pursuing drug makers for wayward programs that provide patients with free medications, copay assistance, or help with navigating insurance coverage, as well as donations that are made to foundations that provide copay assistance. The feds are concerned these arrangements contribute to rising drug prices.

Unlock this article by subscribing to STAT+ and enjoy your first 30 days free!