Drug lobbyists, PhRMA and BIO have been trying to sell the public on claims that kickbacks involved in the Omnicare Whistleblower Litigation, in which Omnicare, a prominent pharmacy benefit manager, allegedly accepted bribes from most top drug companies in return for pushing expensive medicines over cheaper alternatives, offered rebates to Omnicare, thereby lowering the net drug price, and made bogus payments for Omnicare’s prescription data and for educations programs to lower Omnicare’s price even further.
The Lobbyists contend that these types of payments were completely legal and that discounts from manufacturers to healthcare providers ultimately reduce costs and promote competition. The Department of Justice disputes these contentions, arguing that if the payments had been legal, then Omnicare would have disclosed them to the government. It also pointed out that Johnson and Johnson made an additional $280 million in sales as a result of the scheme.
For more information see: http://www.bnet.com/blog/drug-business/drug-lobbyists-argue-kickbacks-lower-the-cost-of-healthcare/6575