The FBI is currently investigating what may appear to be fraud concerning pain-killing medical creams. Some claim that the creams may have no medicinal value, or that the creams may be priced unreasonably high. The investigation is still in very early stages.
Fortune.com discusses the investigation further.
The specialty compounding creams are mainly marketed at athletes and the elderly as a way to quickly alleviate pain and cramping. According to the Wall Street Journal, sales have risen lately following a marketing blitz that included ads featuring former NFL quarterback Brett Favre. Investigators are looking into claims that some of the creams have no medical value, pharmacies have overbilled, sent patients more than they ordered, or refilled prescriptions without being asked. Some companies have charged over $10,000 for a single tube of the ointment.
The fraud has supposedly affected private insurance companies, Medicare, and Medicaid. The biggest alleged victim is a health insurance program for military personnel and veterans. Investigations are still in their early stages, and no charges have been filed.
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There is very little regulation of compounding creams. Because there are so many variations, it’s inefficient for the FDA to screen them all and so they don’t require approval from the agency. The International Academy of Compounding Pharmacists told the Journal that legitimate creams can really benefit people, particularly since they’re non-addictive, and health care payers should take “aggressive action against any health care provider that has allegedly broken the law.”
Much more will need to be investigated before any charges are filed.
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