The U.S. Dept. of Justice has accused Abbott Laboratories of defrauding Medicare and Medicaid by inflating the prices of its drugs.
USA Today reported on May 18, 2006 that over a ten year period the fraud cost the government more than $175 million.
Abbott inflated the reported manufacturer’s price, government programs reimbursed based on that price, and providers were able to pocket the difference, making them more likely to prescribe Abbott’s drugs.
The case originated as a whistleblower lawsuit filed by Ven-A-Care.
The DOJ press release has additional details.