Bayer pays DoJ $100M over kickback allegations in diabetes division

The DoJ said that the $97.5 settlement resolves kickback allegations against Bayer. Image Source: Associated Content

Bayer HealthCare has reached a $97.5 million settlement with the U.S. Department of Justice (DoJ), plus interest, to settle allegations that it paid kickbacks to a number of diabetic suppliers, causing those suppliers to submit false claims to Medicare.

The DoJ said that the settlement resolves allegations that Bayer engaged in a cash-for-patient scheme through which the company paid 11 diabetic suppliers to convert their patients to Bayer's products from supplies manufactured by its competitors between 1998 and 2003.

The Leverkusen, Germany-based Bayer said that it cooperated with the DoJ’s civil investigation that commenced in 2003, without acknowledging liability.

Under the terms of the agreement, Bayer said it will pay $97.5 million to the government, and will enter into a corporate integrity agreement (CIA) with the Office of Inspector General for the Department of Health and Human Services. Bayer divisions covered by the CIA are those that sell products to federal government entities, such as the VA, and/or sell products for which claims are submitted for reimbursement under federal healthcare programs: Bayer Healthcare Diabetes Care, Bayer HealthCare Pharmaceuticals, Medrad (including Possis), Intendis and Viterion TeleHealthcare.

Bayer also noted that it “decided to resolve this investigation to avoid the time, uncertainty, and expense of litigation.”