Are reverse payment settlements creating government overpayments?

Pay for delay lawsuits have popped up in several states such as California and Pennsylvania in recent months. While pay for delay schemes are technically illegal under anti-trust laws, they now face a new problem—some experts are claiming that pay for delay settlements are also causing government overpayments. The False Claims Act case was unsealed in May, and in the case, the federal government is claiming that pay for delay settlements are rising prices. In fact, the government claims the settlements are engineered in a way that purposefully causes Medicare and Medicaid to overpay for drugs.


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