Ulterior Motive in Question with Drug Companies’ Charity
Posted in News on 2.16.2017
The Massachusetts U.S. Attorney’s Office is currently leading a nationwide investigation into drug companies’ charitable contributions toward organizations that provide financial assistance to patients whose health conditions require expensive drugs. These organizations typically cover copayments, alleviating the financial responsibility of patients, while Medicare covers the rest of the cost.
Drug companies may appear to be acting altruistically when they donate large sums of money, but there is concern that ongoing support for financial assistance organizations actually allows them to keep prices high. Specifically, without the existence of these organizations, drug companies would likely be forced to lower their prices in order to remain competitive. However, under the current system, drug companies can make a small contribution to a financial assistance organization and still pick up a profit from Medicare.
At least six companies have been subpoenaed by the Massachusetts U.S. Attorney’s Office. Read the full article here.