Pfizer pharmaceutical company settled for $24 million on Thursday after federal prosecutors alleged that it used funds from a charity to pay Medicare patients’ out-of-pocket prescription costs.
The settlement comes after a report that the pharmaceutical companies were donating money to charities that cover a portion of patients’ costs for their drugs. This, in turn, made the drugs more affordable, thereby boosting sales. (RELATED: Here’s Where Your Healthcare Dollars Go)
Pfizer was still able to profit because insurance paid the remainder of drug costs, money that went straight to the company. For every $1 million donated, sales were boosted up to $21 million, according to a report by Citi Research.
There may be more settlements to come. Offices on the Hill are also investigating the matter, a source told The Daily Caller News Foundation.
Pfizer isn’t the first company to be accused of donating to an illegal charity to boost its own profits, United Therapeutics Court paid $210 million in July 2017 to settle similar claims.
Follow Julia Cohen on Facebook and Twitter.
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.