Bristol-Myers Squibb and the Culture of Kickbacks

It is well known that one reason health care costs are so high is because of the high cost of prescription drugs. According to a recent report by Public Citizen, U.S. spending on prescription drugs has increased from $40 billion in 1990 to $234 billion in 2008. But what most people don't know is that pharmaceutical companies have engaged in a variety of illegal marketing tactics that help to drive up the costs of drugs, including giving kickbacks to doctors to prescribe pricier drugs than is needed.

The practice of kickbacks has attracted new scrutiny thanks to a whistleblower lawsuit against Bristol-Myers Squibb, the giant drugmaker. BMS bribed doctors to prescribe certain drugs "with sports tickets, fancy meals, honoraria, all-expense-paid trips, and gifts," according to the California State Insurance Commissioner Dave Jones. Today, Jones' office announced that it has joined the lawsuit, which is the largest health insurance fraud case ever pursued by a California state agency.

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Complaint Against Bristol-Myers Squibb