Insys ‘Reimbursement Unit’ Fraudulently Boosted Fentanyl Rxs, DOJ Charges

Six former Insys executives and managers arrested on changes of misleading insurers and pharmacy benefit managers into authorizing payments for Subsys sublingual fentanyl pain medicine.

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The Department of Justice alleges that former Insys Therapeutics Inc. executives and managers created a reimbursement unit to increase prior authorizations for the company’s fentanyl-based spray Subsys. The government says the individuals then disguised the unit in calls to insurers and pharmacy benefit managers to get them to believe they were getting calls directly from doctors’ offices.

The US Attorney’s Office for the District of Massachusetts announced that six former employees of Insys, including president and CEO Michael Babich, were arrested on Dec. 8 on charges that they led a nationwide conspiracy to bribe medical practitioners to prescribe Subsys and defraud healthcare insurers

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