In view of the festive season we’ve decided to leave the political review of the past 12 months to the excellent political satirists at JibJab. They entitled their remorseless, but as usual, stunningly accurate review of the year Duet of Regret. Word on Health is delighted to re-gift this to you. Enjoy!
It’s been an equally bad year for doctors. In late November, physicians learned that the reimbursement they receive for Medicare patients would drop by 23% in December and a further 2% in January. These cuts are the latest installment of the 1997 Balanced Budget Act and attempts to rein in spending on health care for the elderly.
This is not only bad news for doctors, many of whose practices are largely composed of Medicare patients but also for the baby-boomer patients just turning 65 who may find themselves without a doctor. Critics predict, some physicians will see Medicare patients less frequently, while others will stop seeing them altogether. Cynics have gone so far as to call this “elder cleansing.”
Now, to top of the year, a report from Public Citizen found that pharmaceutical companies top the list when it comes to defrauding the government. In fact , over the past decade, the pharma industry accounted for 25% of all federal fines charged under the False Claims Act.
According to the analysis, drug-makers were the focus of 165 major settlements and have paid $19.8 billion in fines and settlements since 1991. Three-quarters of these charges occurring over the past five years. GlaxoSmithKline, Pfizer, Eli Lilly, and Schering-Plough accounted for $10.5 billion of all financial penalties imposed over that period.
Pfizer holds the record for the largest criminal fine in United States history, $1.3 billion, and the largest health care fraud case, $2.3 from a settlement last year involving its marketing of the painkiller Bextra and other drugs.
Another company joined the violators list just last week. Irish drug maker Elan announced that it had agreed to pay $203.5 million, half in criminal penalties, half in a civil payment, to settle an investigation of its illegal off-label marketing of the antiseizure medicine Zonegran.
While Word on Health sadly can’t fix politics or physician payments, SRxA can certainly help pharmaceutical companies stay out of trouble. To find out how, make it your New Year’s Resolution list to contact us.