Bayer, the folks who make aspirin and medical supplies, has a growing business in the diabetes care field. With more than 20 million Americans currently suffering from diabetes and a projected 1 in 3 children aged 8 projected to contract the disease, there is big money in reaching diabetics and locking down their preferences.
The giant health care company has agreed to pay a fine of nearly $100 million to settle U.S. Justice Department allegations that they paid distributors to convert diabetic patients from their glucometer (a device that measures blood sugar), test strips (the expensive part of the proposition, ranging up to $1 each for the uninsured) and other supplies.
The federal agency says that supplier Liberty Medical received $2.5 million as payment for each Medicare patient converted. The funds were designated “advertising”.
“If medical device manufacturers want to serve Medicare beneficiaries they must follow the law,” said Gregory G. Katsas, Assistant Attorney General for the Civil Division. “Paying healthcare suppliers to place a particular brand of device with Medicare beneficiaries violates the law and will not be tolerated.”
Bayer reportedly paid $375,000 to ten other suppliers. The $97.5 million fine settles claims against Bayer through 2007. The company was also required to enter into an agreement with the government regarding future conduct.
Posted under Customer Service
This post was written by George Bounacos on November 25, 2008


