Diabetic supply maker Bayer Healthcare, a unit of Bayer AG, has agreed to pay $97.5 M to settle claims that it paid kickbacks to several diabetic suppliers and caused them to submit false Medicare claims, according to the U.S. Justice Department.
Bayer agreed to enter into a corporate integrity agreement — which allows companies to continue in the federal Medicare program while requiring steps to safeguard against fraudulent behavior — as part of the settlement, the department said.
The settlement resolves allegations that Bayer paid 11 diabetic suppliers to convert their patients to Bayer products from competitors’ products.
The department said Bayer allegedly paid Liberty Medical Supply Inc about $2.5 million between 1998 and 2002 to convert its patients to Bayer. It also allegedly paid kickbacks of about 375,000 to 10 other diabetic suppliers.
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