Pharmaceutical giant Pfizer will be paying more than $2.3 million on behalf of its wholly owned subsidiary Biohaven Pharmaceutical Holding Company Ltd. to the Florida Medicaid program.
Florida’s Medicaid Fraud Control Unit secured the win through a multistate action, after whistleblowers filed lawsuits against the company alleging that Biohaven had been giving health practitioners kickbacks to hawk their products to patients, specifically the migraine headache treatment Nurtec ODT, according to the Florida Office of the Attorney General.
In the settlement agreement from the U.S. Department of Justice, it states health care providers were paid these kickbacks to present at various speaker programs that were held virtually, in a provider’s office, or at other offsite venues, such as high-end restaurants.
It was alleged the providers then tried to persuade their colleagues to prescribe Nurtec to Medicaid and other federal health care beneficiaries — a violation of the Anti-Kickback Statute.
Biohaven had paid providers up to $100,000 to host speaker programs, which in some cases were attended by the provider’s spouse, family, friends, and colleagues from their own practices, despite there being no educational need for them to attend the program.
It was further alleged that some providers attended multiple speaking events, receiving expensive meals and drinks all paid for by Biohaven in order to influence the providers to prescribe Nurtec to their patients.
“I’m incredibly proud of our Medicaid Fraud Control Unit for leading the way in holding Biohaven accountable. Actions, like those alleged here, must be stopped to prevent health care fraud,” acting Florida Attorney General John Guard said in a statement.
Investigations into the allegations against Biohaven were launched by the National Association of Medicaid Fraud Control Units team, who negotiated settlements alongside the U.S. Department of Justice and the U.S. Attorney’s Office for the Western District of New York. Attorney general offices from California, New York, and Virginia were also involved in the investigation.
In total, Pfizer agree to pay $2,300,449 to the Florida Medicaid program, and will pay millions with interest to Puerto Rico, the U.S., and 37 other states to resolve the lawsuits, with the settlement topping $59 million.
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