Roche, Priority Healthcare settle for $43M
By HME News Staff
Updated 10:52 AM CST, Wed February 24, 2021
INDIANAPOLIS - Priority Healthcare Corp. has agreed to pay $43 million to Roche Diagnostics to settle allegations that it filed fraudulent claims for diabetes testing supplies.
In a lawsuit filed in September 2018, Roche, a manufacturer of diabetes testing supplies, says it paid $37.5 million in “unwarranted” rebates to insurance companies and their pharmacy benefit managers for claims submitted by PHC, a network of pharmacies in Mississippi, Alabama and Arkansas, between Jan. 1, 2013, and the end of the first quarter of 2018.
PHC allegedly submitted nearly 800,000 insurance claims for blood-glucose test strips, many of which were for retail test strips, when not-for-retail test strips were actually dispensed.
In 2019, a judge for the U.S. District Court for the Northern District of Alabama, granted a motion to freeze certain assets of PHC.
Roche is represented by Patterson Belknap Webb & Tyler LLP.
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