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Medco Beats False Claims Suit Alleging Kickbacks

Law360, New York (January 02, 2014, 3:30 PM ET) — A New Jersey federal judge on Monday tossed a False Claims Act suit alleging a Medco Health Systems Inc. unit made illegal donations to nonprofits serving hemophilia patients in exchange for referrals to its treatment centers, ruling that the money was not used to bilk federal health care programs.

U.S. District Judge Noel L. Hillman, sitting in Camden, said Medco unit Accredo Health Group Inc.’s goal in making contributions to advocacy groups such as Hemophilia Services Inc. was to enable those organizations to cover the private health insurance premiums of their members and keep those patients from using public benefits, which would’ve hurt Accredo’s business.

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