Pfizer To Pay $24 Million For Illegally Assisting Charities

Julia Cohen | Reporter

Pfizer pharmaceutical company settled for $24 million on Thursday after federal prosecutors alleged that it used funds from a charity to pay Medicare patients’ out-of-pocket prescription costs.

The settlement comes after a report that the pharmaceutical companies were donating money to charities that cover a portion of patients’ costs for their drugs. This, in turn, made the drugs more affordable, thereby boosting sales. (RELATED: Here’s Where Your Healthcare Dollars Go)

Pfizer was still able to profit because insurance paid the remainder of drug costs, money that went straight to the company. For every $1 million donated, sales were boosted up to $21 million, according to a report by Citi Research.

There may be more settlements to come. Offices on the Hill are also investigating the matter, a source told The Daily Caller News Foundation.

Pfizer isn’t the first company to be accused of donating to an illegal charity to boost its own profits, United Therapeutics Court paid $210 million in July 2017 to settle similar claims.

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