Skip to Content

Roche, Priority Healthcare settle for $43M

Roche, Priority Healthcare settle for $43M

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.




To comment on this post, please log in to your account or set up an account now.