Pfizer To Pay $24 Million For Illegally Assisting Charities
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.