[Pharm-policy] USAToday: Drugmakers accused of price scheme

[James Love]

                Drugmakers accused of price scheme

Sept. 27, 2000 

By Julie Appleby, USA TODAY 

Government investigators have uncovered documents they say show some
drugmakers deliberately manipulate prices so doctors can overcharge
Medicare - and then promote the profit-making strategy to physicians.

Documents released by the House Commerce Committee Tuesday reveal for
the first time the marketing efforts behind pricing practices that may
cost government health programs and patients $1 billion a year.

  [snip]

The documents suggest:

 Drug companies manipulate wholesale prices of some drugs to maximize
profits for doctors and clinics. Doctors can bill Medicare and state
Medicaid programs based on wholesale prices, yet are able to buy the
drugs for less than wholesale.

 Doctors and clinics are offered rebates, free goods or even cash as
"off-invoice" enticements to buy particular drugs.

  [snip]