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Sanofi-Pasteur to pay $20 million penalty for overcharging Veterans Affairs

Overcharges had occurred going back to 2002, DOJ said.

Beth Jones Sanborn, Managing Editor

Audie L. Murphy Veterans Administration Hospital in San Antonio, TX (via <a href="https://commons.wikimedia.org/wiki/File:Audie_L._Murphy_VA_Hospital,_San_Antonio,_TX_IMG_7759.JPG">Wikipedia</a>)Audie L. Murphy Veterans Administration Hospital in San Antonio, TX (via Wikipedia)

Sanofi-Pasteur, the vaccine division of Delaware corporation Sanofi-Aventis, will pay nearly $20 million to settle claims that it miscalculated drug prices and overcharged the Department of Veterans Affairs, the Department of Justice announced Monday.

Sanofi Pasteur is headquartered in Swiftwater, Pennsylvania.

Under the Veterans Health Care Act, drug manufacturers can't charge the VA more than a maximum amount, known as the Federal Ceiling Price, for covered drugs. Sanofi Pasteur informed the VA that it had incorrectly calculated that maximum for certain drugs from 2007 to 2011, and overcharged them. The Office of Inspector General for the VA investigated and concluded that overcharges had occurred going back to 2002, the DOJ said.

[Also: Running list of notable 2017 healthcare frauds]

In addition to the monetary penalty, Sanofi Pasteur said they won't pursue reimbursement claims for sales where miscalculations resulted in a lower price to the VA.

"Overcharging VA depletes funds that are available to care for our veterans," said Mark Myers, director of the healthcare resources division of veterans affairs for the Office of Inspector General. "We will continue to hold companies accountable for errors in drug pricing."

Twitter: @BethJSanborn

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