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Friday, Jul 31 2015

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Medical Device Maker Agrees To $13.5M Settlement Over False Claim Allegations

NuVasive was accused of promoting a spine surgery device for uses the Food and Drug Administration did not approve. In other news, medical device profits rise, and a lawsuit accuses CVS of overcharging for generic drugs.

Federal prosecutors say a medical device manufacturer has agreed to pay the U.S. $13.5 million over allegations of false claims for the company's devices. Maryland U.S. Attorney Rod J. Rosenstein said in a news release Thursday that California-based NuVasive Inc. agreed this week to the settlement, which also resolves allegations that the company paid kickbacks to physicians to use its devices. (7/30)

California-based medical device manufacturer NuVasive Inc. has agreed to pay $13.5 million to resolve allegations that it caused healthcare providers to submit false claims to Medicare and other federal health programs for spine surgeries, the Justice Department said on Thursday. The company had marketed its CoRoent System to the providers for surgical uses that were not approved by the U.S. Food and Drug Administration, the department said. NuVasive also paid kickbacks to physicians for using the CoRoent System, the department said. (Dunsmuir, 7/30)

Medical device companies have seen their profits continue to increase, even after a new tax from ObamaCare, according to a federal watchdog. The Government Accountability Office looked at 102 medical device companies, and found a roughly 44 percent increase in profits from 2005 to 2014 – from $11.4 billion to $16.5 billion. (Becker, 7/30)

CVS deliberately overcharged some pharmacy customers for generic drugs by submitting claims to their insurance companies at inflated prices, according to a lawsuit filed on Thursday in federal court in San Francisco. The suit says those inflated prices led to higher co-pays for customers that exceeded what they would have paid for the drugs if they had no insurance and participated in a CVS discount program. (Thanawala, 7/30)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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