|FROM ||Ruben Safir
|SUBJECT ||Re: [Hangout - NYLXS] Abbott Scam
|From hangout-bounces-at-nylxs.com Sun Jun 11 02:15:31 2017
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From: Ruben Safir
Date: Sun, 11 Jun 2017 02:15:27 -0400
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Subject: Re: [Hangout - NYLXS] Abbott Scam
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On 06/11/2017 02:09 AM, Ruben Safir wrote:
> On 06/11/2017 01:58 AM, Ruben Safir wrote:
>> On Sat, Jun 10, 2017 at 08:15:37PM -0700, Rick Moen wrote:
>>> Quoting Ruben Safir (ruben-at-mrbrklyn.com):
>>>> Abbott Pharmacuetics is giving kickback to healthcare insurance
>>>> companies to mandate that Pharmacies must use their lifestyle diabetic
>>>> testing supplies. This is thanks to Obama care.
>>> If Abbott Pharmaceuticals is engaging in corruption, it should get
>>> prosecuted for that. Please provide your evidence to both this mailing
>>> list and state prosecutors. Thank you.
> It is fucking corrupt to give insurance companies kickbacks and then
> shake down healthcare providers, mostly pharmacists, so that they have
> to pay you for the privileged to provide healthcare for patients.
> You don't know a damn thing about health insurance or the scams of the
> healthcare business, of which this is one of the largest.
> If you say, one more time, that just because something is legal that
> it is not corruption and immoral, I'll kick you off the list and
> terminate the friendship.
> I've been doing healthcare for decades now and been screwed by
> this broad corruption for decades. It has destroyed a good part of my
> life, and caused enormous suffering.
> If you want a platform to drone on half baked legal arguments why it is
> moral for force healthcare providers to pay extortion to Abbott after
> Abbot goes about paying kickbacks to PBMs to make them the exclusive
> provider of diabetic supplies, you can do that on YOUR list.
> I don't care WHY you think this kind of racketeering is legal.
Abbott and others defraud Medicaid
Abbott seems to have been the prime mover in a scheme to defraud
Medicare and Mediciad when selling medical equipment. In 2001 Abbott
paid a US $560 million civil settlement, a US $290 million criminal
fine, and US $25 million to the US states that were defrauded. It
escaped conviction for price fixing in 1998 but paid a small fine in 2000.
The FTC's earlier effort, a 1992 case against Abbott Laboratories
for alleged price-fixing of baby food formula, ended in failure when a
judge ruled that the agency had not proved its case. In that suit, the
FTC had sought a fine of $ 19 million. ANTITRUST REGULATORS CRACK DOWN
ON HEALTH INDUSTRY; CONSUMERS: IN LATEST ANTI-MONOPOLY MOVE, FTC WILL
SEEK $120 MILLION IN FINES AGAINST DRUG COMPANY MYLAN. Los Angeles Times
December 22, 1998
COMPANY/PERSON:Abbott Ambulance, Inc.
ALLEGATIONS:Billing federal health care programs for Medically
unnecessary transports and other non-covered trips
COMPANY/PERSON: Takeda Abbott Pharmaceuticals/ TAP Pharmaceutical
ALLEGATIONS: Allegedly false pricing of Average Wholesale prices;
illegal marketing and sales practices
AMOUNT: $559,483,560 in civil FCA damages and penalties. Total award
to relators (divided among two individuals and Tuft=C3=A2s Associated HMO):
17%, or approximately $95 million. TAP also paid a $290 million criminal
fine and paid more than $25 million to settle claims with the 50 states
and the District of Columbia relating to allegedly false Medicaid claims.
Fried, Frank, Harris, Shriver & Jacobson
The United States Attorney's office in Boston has widened its
five-year investigation into the sales practices of prescription-drug
companies, subpoenaing records involving the distribution of a
best-selling drug, Prevacid, made by TAP Pharmaceuticals.
TAP, a joint venture of Abbott Laboratories and Takeda Chemical
Industries of Japan, and two managed care drug distributors, Caremark Rx
and Express Scripts, said that they had received subpoenas in the last
Last October, TAP paid $875 million to settle criminal and civil
charges that the company had defrauded Medicare and Medicaid, the
government insurance programs for elderly, disabled and low-income
people. As part of that settlement, TAP admitted that its sales people
had helped doctors charge the government for free samples of Lupon. The
agreement was the largest health-care fraud settlement. Inquiry Into
Drug-Sales Practices Is Widened The New York Times May 13, 2002
Tap Pharmaceuticals agreed to pay $875 million, including a
$290-million criminal fine. Warning: The P3s are coming! Winnipeg Free
Press Jul 21, 2002 www.winnipegfreepress.com
The subsidiary, CG Nutritionals, pleaded guilty to obstructing a
criminal health care investigation Wednesday in federal court, after a
sweeping federal investigation into fraudulent sales of medical equipment.
Abbott admitted that its employees provided undercover "buyers''
information aimed at helping them overcharge Medicaid and Medicare, the
federal health insurance programs for the elderly and indigent. Abbott
Laboratories to Pay $600M in Fines New York Times July 24, 2003
The U.S. attorney's office for the Southern District of Illinois in
August 2001 launched an investigation into whether Ross, an Abbott
division that manufactures liquids and pumps used to feed individuals
with serious illnesses, and other medical product manufacturers -- such
as Novartis, the Kendall division of Tyco International and Zevex
International -- worked with providers to defraud Medicare and Medicaid.
The companies allegedly offered a discount to nursing homes, hospitals
and home health care providers to encourage them to purchase pumps and
related supplies. Providers allegedly billed the products to CMS at
Last month, Abbott became the first company to announce a settlement
in the case and allocated $622 million to cover the cost of the
agreement (Kaiser Daily Health Policy Report, 7/23). Under the
settlement, CG Nutritionals will pay $200 million in criminal fines and
can no longer participate in Medicare or Medicaid. Abbott Laboratories
Subsidiary Pleads Guilty to Felony Charge From the www somewhere July 2003
In June, AstraZeneca paid $355m in criminal fines and an
out-of-court settlement. Schering-Plough said in May that it was likely
to face criminal charges over sales and pricing practices, and document
destruction. Earlier, Bayer pleaded guilty and paid $257m to resolve
criminal and civil claims.
Drugs companies have complained that the medical billing system in
the US is arcane and complex. But Neil Getnick, attorney of Getnick &
Getnick, a law firm specializing in whistleblower cases and anti-fraud
litigation, said that was not the entire problem.
"There is a very troubling pattern in the industry that is systemic
and not aberrational," Mr. Getnick said. Health-care fraud convictions
rise FINANCIAL TIMES August 10,2003
Investigators want to know whether Ohio customers of Columbus-based
Ross Products filed fraudulent Medicaid claims for internal feeding
equipment, said John Guthrie, head of the attorney general's health-care
Guthrie said customers, including nursing homes and medical
equipment suppliers that sought improper reimbursement, also should be
"Ross was the one that initiated this, but the nursing homes and
supply companies that actually submitted the bills have culpability as
well," he said. Guthrie said investigations are expected in other states
and other companies that make similar products also face scrutiny.
Ross employees then counseled their customers to submit claims for
reimbursement for the products they bought and the pumps they received
free, prosecutors said. The company also is accused of offering up-front
payments to customers who agreed to contracts, in violation of federal
anti-kickback statutes, authorities said.
Tom Weager, warehouse manager for Miesse Medical Supply of Columbus,
said Ross and other vendors offered free feeding equipment in Ohio until
about two months ago - approximately when Ross officials reached their
settlement with federal authorities. Ohio AG to investigate Medicaid
claims related to equipment The Associated Press State & Local Wire
September 15, 2003
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