Nevada will receive approximately $442,381.44 from a multistate settlement with Gilead Sciences, Inc., following a federal investigation into an alleged illegal kickback scheme involving the company’s HIV medications.
The agreement, announced this week by Nevada Attorney General Aaron D. Ford and a coalition of 48 other attorneys general, secures more than $202 million from Gilead.
The settlement resolves allegations that, from January 2011 to November 2017, the company provided unlawful incentives to health care providers to boost prescriptions of its HIV drugs.
According to court documents and officials involved in the case, Gilead allegedly offered meals, travel expenses, and monetary awards to providers who attended or presented at promotional speaker programs.
These events promoted the company’s HIV medications, including Stribild, Genvoya, Complera, Odefsey, Descovy, and Biktarvy.
Health care providers were allegedly paid tens to hundreds of thousands of dollars as “HIV Speakers,” with some receiving travel accommodations to destinations such as Hawaii, Miami, and New Orleans, and dining at high-end restaurants.
The U.S. District Court for the Southern District of New York approved the settlement in principle, which was reached in coordination with the U.S. Department of Justice. Of the $202 million total, $49 million will go to Medicaid programs across the country. The rest will be distributed to federal programs, including Medicare, Tricare, and the AIDS Drug Assistance Program (ADAP).
"Gilead's illegal kickback scheme undermined the integrity of medical decision-making and cost taxpayers millions of dollars,” said Attorney General Aaron D. Ford. “The nearly half-million dollars Nevada is expected to receive from this settlement will help support our Medicaid program and ensure resources go where they belong – toward providing quality healthcare to Nevadans who need it most.”
The Nevada Medicaid Fraud Control Unit (MFCU), which investigates and prosecutes financial fraud and abuse involving Medicaid providers, helped support the investigation.
The unit receives 75 percent of its funding from the U.S. Department of Health and Human Services and 25 percent from the State of Nevada.
Those wishing to report suspected Medicaid fraud or elder abuse can contact the Nevada MFCU at 702-486-3420 or 775-684-1100.
