Pharmaceutical drugs sales, qui tam lawsuits
  and the False Claims Act -- Part IV

Federal ceiling price, Federal Supply Schedule and pharmaceutical drug fraud against the Department of Defense and other federal agencies
Pharmaceutical companies’ sales of most drugs to the Department of Defense, the Veterans Administration, the Public Health Service and the Coast Guard may not exceed the “federal ceiling price.”  Pharmaceutical companies that inflate the federal ceiling price for such sales may be liable under the False Claims Act.

In addition to complying with the federal ceiling price requirements, manufacturers of brand-name drugs must make all of their covered pharmaceutical products available on the Federal Supply Schedule, as required by the Veterans Health Care Act of 1992. The Federal Supply Schedule is a listing of goods available for sale mainly to federal government agencies. Drug prices on the Federal Supply Schedule must be equal to or better than the best price charged to the manufacturer’s most favored non-federal customers.

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