Texas Attorney General Ken Paxton has secured a $45 million settlement with pharmaceutical company Gilead Sciences over allegations that it engaged in an illegal kickback scheme designed to influence prescriptions covered by state Medicaid.
Gilead allegedly offered illegal incentives to medical providers in Texas, including "free nurses" and reimbursement support services, to encourage them to prescribe Gilead drugs over competitors' medications. Many of the resulting prescriptions were paid for by Medicaid, according to the attorney general.
Payton sued Gilead in October 2023 for engaging in unlawful marketing practices that violated the Texas Health Care Program Fraud Prevention Act. Under the settlement announced Wednesday, Gilead will pay $45 million to repay the state.
"Doctors ought to prescribe medication in accordance with what is in the best interest of the patient," Paxton said. "When Big Pharma attempts to bribe providers by offering kickbacks, the integrity of our healthcare system is jeopardized."
The settlement builds on the attorney general's broader crackdown on Medicaid fraud, including a previous settlement with AstraZeneca for a similar illegal kickback scheme. The office has also taken legal action against Eli Lilly and Sanofi-Aventis.