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US charity pays $4m to settle allegations it paid patients kickbacks from drug makers

The Assistance Fund (TAF), a charity based in Orlando, Florida, will pay $4m (£3.1m; $3.6m) to settle claims that it served as a conduit for kickbacks from the drug manufacturers Teva, Biogen, and Novartis that aimed to encourage Medicare patients with multiple sclerosis to use their expensive products.

Medicare, the public insurance scheme for people aged 65 or over, covers most of a drug’s price, but patients must cover a small portion through a copayment. This is intended to introduce market forces by making more expensive drugs a costlier choice for patients as well as taxpayers.

The Anti-Kickback Statute, a federal law, bans drug manufacturers from covering copayments on patients’ behalf, as this could increase Medicare patients’ use of very expensive drugs, …