Attorney General Dave Sunday has announced that Pennsylvania will receive more than $1.28 million as part of a $202 million nationwide settlement with Gilead Sciences, Inc. The agreement resolves allegations that Gilead engaged in an illegal kickback scheme to promote its HIV medications.
Gilead is accused of violating federal anti-kickback laws between January 2011 and November 2017 by providing gifts, travel, and other incentives to health care providers to encourage the prescription of its HIV drugs — including Stribild, Genvoya, Complera, Odefsey, Descovy, and Biktarvy. These actions led to the submission of millions of dollars in false claims to government health care programs.
Of Pennsylvania’s share, $642,189 will go directly to the state’s Medicaid program.
The settlement was coordinated with the U.S. Department of Justice and approved by the U.S. District Court for the Southern District of New York. Of the total amount, $49 million will support Medicaid programs nationwide, with the rest distributed to Medicare, Tricare, and the AIDS Drug Assistance Program (ADAP).
Gilead reportedly paid high-volume prescribers tens to hundreds of thousands of dollars to act as speakers at promotional events, often covering luxury travel and meals. Internal compliance systems at the company failed to stop the improper conduct.
Attorney General Sunday joined 48 other Attorneys General, along with representatives from the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, in securing the settlement.
The Pennsylvania Medicaid Fraud Control Unit, which helped investigate the case, receives 75% of its funding from the U.S. Department of Health and Human Services and 25% from the Commonwealth of Pennsylvania.
