Business Excellence Awards
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By Richard Asinof
PROVIDENCE – GlaxoSmithKline agreed to settle claims and pay $3 billion to resolve allegations that it engaged in illegal marketing and pricing it manufactures and, as part of the settlement, Rhode Island will received $4.6 million in recoveries, the R.I. Office of the Attorney General announced on July 2.
GlaxoSmithKline settled claims related to:
“Not only did GlaxoSmithKline allegedly engage in off-label promotion, but it also targeted children and pregnant women and offered kickbacks to health care professionals,” said R.I. Attorney General Peter F. Kilmartin.
In May, in another drug fraud settlement against Abbott Laboratories, Rhode Island received more than $2.3 million in recoveries related to Abbott’s promotion and sale of the drug Depakote for uses that were not approved by the Food and Drug Administration as safe and effective. The alleged conduct resulted in false claims to Medicaid and other health care programs.
Increases in pharmacy costs are one of the major drivers in the request for increases rates for 2013 by commercial health insurers in Rhode Island, according to analysis by the R.I. Office of the Health Insurance Commissioner. UnitedHealthcare of New England is seeking a 12.3 percent annual increase for small groups and a 12.4 percent annual increase for large groups; Tufts Health Plan is seeking a 4.7 percent annual increase for both small and large groups, and Blue Cross & Blue Shield of Rhode Island is seeking a 7.5 percent annual increase for small groups and a 6.5 percent increase for large groups.