Bayer Agrees to Pay U.S.
$257 Million in Drug Fraud

In the largest Medicaid fraud settlement, Bayer agreed yesterday to pay the government $257 million and pleaded guilty to a criminal charge after engaging in what federal prosecutors said was a scheme to overcharge for the antibiotic Cipro. According to documents turned over to the government by a whistle-blower, Bayer was coached in the scheme by a purchasing manager from Kaiser Permanente, one of the nation's largest health care organizations. The fraud involved selling Cipro to Kaiser at prices lower than the company was charging Medicaid, in violation of a federal law that requires drug makers to give the Medicaid program the lowest price charged to any customer. To cover up the fraud, the Cipro bottles sold to Kaiser were relabled with Kaiser's name and given a different drug identification number.
New York Times, 17th April 2003

More at http://www.nytimes.com/2003/04/17/business/17DRUG.html?tntemail1

CTM COMMENT: We are shocked and confused that this is happening in the pharmaceutical industry. We thought they put our health before their profits. We had no idea that business ethics could stoop so low.