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$4 Million Settlement Latest in Growing Trend of Patient Assistance Program Scrutiny

On November 20, 2019, The Assistance Fund (TAF) agreed to pay a $4 million settlement and enter a three-year integrity agreement, to resolve allegations of False Claims Act violations related to paying impermissible kickbacks to Medicare beneficiaries. This represents the third settlement involving a patient assistance fund in the past month, indicating a trend in enforcement action.

TAF operated assistance programs to assist patients, including Medicare beneficiaries, with co-payment, co-insurance, and deductible obligations for prescription drugs. TAF obtained the assistance funds from pharmaceutical manufacturer contributions. However, similar to CDF  and PANF, TAF allegedly permitted manufacturers to provide financial assistance directly to patients obtaining their respective prescription drug products.  

In addition to the recent settlements with other patient assistance funds, the pharmaceutical manufacturers involved have paid a total of more than $840 million to resolve allegations that they have made financial contributions to these programs as disguised kickbacks to Medicare beneficiaries. Contact Frier Levitt today for a review of the programs you administer or participate in to determine if they are compliant with Federal law.