Senator Grassley questions Amgen rebates
Pharma Compliance Alert, April 9, 2008
Amgen, already answering questions posed by members of the House of Representatives about bundling of its anemia drugs (see above), now finds itself the recipient of a letter from Senator Charles Grassley (R-IA) about its drug rebates.
Grassley wants Amgen to explain its drug rebate and discount calculations and why some physician groups received large rebates for purchasing Aranesp, an erythropoiesis-stimulating agent that is also the subject of a House investigation.
Amgen paid almost $800 million in rebates to 6,000 facilities in 2006, with approximately 80% going to physicians, group practices, and physician clinics, according to Grassley’s letter.
Grassley began investigating Amgen’s rebate practices in May 2006, after The New York Timesreported physicians were profiting by collecting rebates directly from Amgen, then billing Medicare and private insurers. The combination of the rebates and payment from insurance sometimes equaled more than the cost of the drugs. Grassley sent a second letter in August 2007, requesting information about rebates paid to physicians, group practices, and others who purchased Aranesp and/or Epogen.
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