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Three major drug
companies have been accused of illegally providing financial
incentives to doctors and pharmacists to favor their products,
a practice that costs consumers tens of millions a year.
The companies,
Pharmacia, GlaxoSmithKline and Aventis, are accused of "consumer
fraud, commercial bribery and making false statements concerning
inflated wholesale prices to government-operated subsidized
health plans."
Attorneys said
the inflated drug prices cost consumers and the state government
$50 million to $100 million a year.
The companies are
accused of reporting inflated drug prices to governments,
and charging lower prices to health care providers. The difference
between the two amounts, after the government reimburses the
higher costs, can be taken by the health care providers, enticing
them to choose those drugs over other options.
The companies dispute
the claim.
A representative
from GlaxoSmithKline said the company does not control the
price paid by doctors and pharmacies and the reimbursement
rates from the government and that the company does not see
the price differences as a way to entice doctors to favor
their drugs.
Associated
Press February 13, 2003
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