Thursday, July 01, 2004

Investigators Say Drug Makers Repeatedly Overcharged
New York Times story - "Federal investigators said Tuesday that drug companies had repeatedly overcharged public hospitals and clinics for low-income patients, making them pay more than the maximum prices allowed by federal law. Such taxpayer-supported hospitals, community health centers and clinics for people with AIDS are supposed to have access to the government's best prices for outpatient drugs. The investigators, at the inspector general's office in the Health and Human Services Department, found that prices charged to those agencies frequently exceeded the limits set by the Public Health Service Act. In one month, the investigators said, the overcharges totaled $41.1 million, raising the cost of prescription drugs to public hospitals and clinics 18 percent, to $269 million, from $227.9 million..." [Viewing Medscape resources requires registration, which is free].