Last week Bayer HealthCare LLC (Bayer) agreed to pay $97.5 million plus interest to the federal government to settle allegations that Bayer paid kickbacks to diabetes supplies companies and caused such companies to submit false claims to Medicare.
The United States Department of Justice (“DOJ”) alleged that, between 1998 and 2002, Bayer paid Liberty Medical Supply Inc. and ten other companies between $375,000 and $2.5 million to switch their patients to Bayer diabetes supplies, allegedly disguising the kickbacks as advertising payments. The DOJ further alleged that Bayer caused the companies to then submit false claims to Medicare.
In addition to the settlement payment, Bayer agreed to enter into a corporate integrity agreement with the Office of Inspector General for the Department of Health and Human Services (“OIG”). This agreement will allow the OIG to closely monitor Bayer’s practices affecting federal health care programs, and will also require Bayer to review and update employee training programs for those employees working with Medicare.