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Potential fraud has led the Federal Bureau of Investigation (FBI) to investigate $500 million in healthcare fraud. The compounding creams in question are for pain management purposes. It is reported that the creams are mainly marketed to the elderly and athletes.

Fraud complaints have come from multiple private insurance companies. Other major healthcare providers such as Medicare, Medicaid, and military programs are also involved. It has been reported that some companies have charged upwards of $10,000 for one, single container of pain-relief ointment.

The allegations include:

  • Creams having no medicinal value
  • Over-billing from pharmacies
  • Giving patients more than ordered
  • Refilling prescriptions without requests

The pain-relief creams are supposed to decrease pain fast and alleviate cramping. The Food and Drug Administration (FDA) does not regulate these creams. States are responsible for regulating these types of medications.

Some pharmacists and pharmacy employees believe that the new investigation will not turn up anything fraudulent. Several companies, including Opus, have filed for chapter 11 bankruptcy protection recently. One company, Tricare, said that the amount paid for compounding creams in 2015 was 18 times more than in the three previous years. In 2015, Tricare paid out $1.75 billion for compounding drugs.

The Justice Department is actively investigating the fraud claims. Sales of compounding creams for pain-relief have surged following multiple celebrity athlete endorsements. The International Academy of Compounding Pharmacists claims that creams do exist that provide relief. They have also noted that the creams are non-addictive.

If you believe that you have been a victim of prescription fraud, or you have know that someone is defrauding government healthcare programs, you may be entitled to financial compensation. We offer every client and their families a free, no cost and no obligation consultation to discuss your potential claim. We can be contacted via phone at 1-888-55-HARMAN or (404) 554-0777.

Posted on behalf of Harman Law Firm

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