Manufacturer Donations To Copay Charities: Profitability Underscores Kickback Concerns – Study

Department of Justice anti-kickback expert seeks to quantify the potential for manufacturers to benefit from donations to independent copay assistances organizations.

When Is A Charity A Profit-Seeking Enterprise? • Source: Shutterstock

Despite anti-kickback restraints, manufacturers can generate enough revenues on their own drugs in Medicare to make it profitable for them to donate money to independent charitable foundations providing assistance for all treatments for the same condition, an analysis published earlier this month in Health Affairs shows.

As a result, “current federal guidance is insufficient to ensure that manufacturers are not earning kickbacks from their donations to patient assistance foundations; this guidance should be rescinded or substantially...

Entitled “Giving A Buck Or Making A Buck? Donations By Pharmaceutical Manufacturers To Independent Patient Assistance Charities,” the study explores situations in which one or two manufacturers that control...

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