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Bayer Healthcare in $97.5 million kickback settlement

Reuters/Yahoo News, November 26, 2008

Diabetic supply maker Bayer Healthcare has agreed to pay $97.5 million to settle allegations that it paid kickbacks to several diabetic suppliers and caused them to submit false Medicare claims, the U.S. Justice Department said. 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 settlement resolves allegations that Bayer paid 11 diabetic suppliers to convert their patients to Bayer products from competitors' products. It pertains to Medicare claims submitted by the companies from 1998 to 2007.