November 25, 2008 — Bayer Healthcare LLC.

Bayer Healthcare LLC (Bayer) has agreed to pay $97.5 Million, plus interest, to settle allegations that it paid kickbacks to a number of diabetic suppliers, and caused those suppliers to submit false claims to Medicare.

The Tarrytown, NY based company manufactures diabetic self-testing supplies, including glucose monitors and testing strips. Bayer contracts with direct-to-patient diabetic suppliers who market and sell these products to Medicare beneficiaries.

The allegations against Bayer were that it engaged in a cash-for-patient scheme, where Bayer paid Liberty Medical Supply Inc. approximately $2.5 Million to cause its customers to stop using products from other companies, and to start using Bayers’ products instead.

Bayer allegedly disguised the kickbacks as payments for advertising.

See U.S. Dept of Justice Press Release 11/25/08

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