Pennsylvania Will Receive $1.28 Million from Multistate Settlement
HARRISBURG – Attorney General Dave Sunday joined a coalition of 48 other Attorneys General in securing a combined $202 million settlement from Gilead Sciences, Inc. for running an illegal kickback scheme to promote its HIV medications.
Gilead violated federal law by illegally providing incentives – including awards, meals, and travel expenses – to health care providers to prescribe Gilead’s medications, resulting in millions of dollars of false claims submitted to government health care programs.
Pennsylvania is expected to receive $1.28 million and $642,189 will go directly to its Medicaid program.
The settlement, reached in coordination with the U.S. Department of Justice and approved by the U.S. District Court for the Southern District of New York, provides $49 million for Medicaid programs nationwide — with the remainder going to Medicare, Tricare, and the AIDS Drug Assistance Program (ADAP).
“Gilead used illegal kickbacks to corner the market on these life-saving drugs needed by one million Americans living with HIV,” Pennsylvania Attorney General Dave Sunday said. “We saw similar kickback schemes from drug manufacturers during the eruption of the opioid crisis. The money from this settlement will support people living with HIV and bolster prevention programs.”
From January 2011 to November 2017, Gilead violated federal anti-kickback laws by providing gifts to health care providers who attended and spoke at promotional speaker programs for Gilead’s HIV drugs: Stribild, Genvoya, Complera, Odefsey, Descovy, and Biktarvy. Gilead paid high-volume prescribers tens to hundreds of thousands of dollars to present as “HIV Speakers.” The company also covered travel expenses for speakers, including those traveling long distances and to attractive destinations, and hosted dinners at high-end restaurants.
Gilead’s internal compliance mechanisms failed to halt these violations. The company maintained policies and procedures that failed to prevent its sales representatives from improperly offering incentives to induce prescriptions.
Joining Attorney General Sunday in securing settlements with Gilead are the Attorneys General of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
The Pennsylvania Medicaid Fraud Control Unit receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $12,839,940 for Federal fiscal year (FY) 2025. The remaining 25 percent, totaling $4,279,979 for FY 2025, is funded by Pennsylvania.
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