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Insurers give doctors 'kickbacks' for prescribing generic drugs

October 31, 2008 — 11:37am ET | By Anne Zieger
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pharmaceutical industry
incentives
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American Medical Association (AMA)

We all know how the pharmaceutical industry tries to get doctors to prescribe brand-name drugs even though a generic is available, for their own profit. But what about the flip-side of that problem: when insurers give doctors a portion of their savings from generic drugs?

The AMA has defined these incentives as kickbacks and warned doctors last year that they could face both criminal and civil liability under federal statutes if they accept the incentives. And several states are thinking about passing laws to provide greater scrutiny of these practices by insurers.

However, is it the same problem? Insurers claim that they are not forcing doctors to do anything, but simply encouraging them to keep costs down. They also say that patients sometimes won't take brand-name drugs regularly because of the cost. So who has the right of it? Are these kickbacks, or just incentives?

To learn more about this problem:
- read this Associated Press piece

Related Articles:
Express Scripts pays $9.5M settlement over drug switching
FTC: Pharmas cut 14 deals to delay generic sales in '07

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Comments (4) | Post a comment

Comments

By Ray | Posted 4:09pm | October 31, 2008

Both are instances of companies interfering in the healthcare of the patient, not for the patient's benefit, but for their company's economic benefit and their personal economic benefit. BOTH are kickbacks (presuming the Pharma is giving something too). Both are opportunities for abuse

By eric in montreal | Posted 4:20pm | October 31, 2008

anything that is `given` as a reward and that affects the outcome of a decision by the physician is to be considered a kickback. not much of a conundrum there !!!!

By Anonymous | Posted 6:27pm | October 31, 2008

This tacit quid pro quo has been occuring for quite some time. And appears to be a response of the same behavior demonstrated by the branded pharma corps.

By Anonymous | Posted 11:52am | November 1, 2008

THE NEW PRODUCT NEEDS TO BE INTRODUCED TO THE PUBLIC SOMEHOW. I THINK DRUG COMPANIES ARE JUST HAPPY AND WANT TO APPRECIATE THE DOCTORS WHO USE THE DRUGS TO THEIR PATIENTS. THE DOCTORS EARN TO BE IN THAT POSITION AND IT IS UP TO THEIR DISCRETION TO PRESCRIBE THE NEW DRUG TO THEIR PATIENTS WHO ARE NOT GETTING BETTER. THE MOST IMPORTANT TO THE MATTER IS THAT PATIENTS BENEFIT FROM IT AND LAW ON PATIENTS' SAFETY IS NOT BREACHED. THE DOCTORS DO NOT ASK FOR THESE INCENTIVES (IF THAT IS WHAT ONE CALLS FOR THESE) BUT RATHER APPRECIATION GIFTS THAT COME FROM THE DRUG COMPANIES.

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