California sues AbbVie over alleged Humira kickbacks

California Insurance Commissioner Dave Jones filed a lawsuit Sept. 18 accusing AbbVie Inc. (NYSE:ABBV) of "systematically and repeatedly" violating the Insurance Frauds Prevention Act by providing kickbacks to healthcare providers throughout California. According to the lawsuit, "AbbVie paid healthcare providers to prescribe Humira far in excess of the amount that they would have prescribed this expensive and dangerous drug absent the illegal kickbacks." The suit also accused AbbVie of "sophisticated" kickbacks including employing nurses and other staff to counsel patients on how to self-inject, help them with insurance coverage and insurance forms, navigate specialty pharmacy and prior authorization requirements, answer patient questions and conduct follow-ups to ensure patient adherence.

California is seeking injunctive and equitable relief; assessments of three times the amount of each claim for compensation pursuant to contracts of insurance made for Humira; civil penalties of $10,000 for each fraudulent claim presented to an insurance company; and attorneys’ fees and costs. In the suit, the state said data it has obtained shows that private insurers paid more than $1.3 billion on Humira claims from 2013 to Aug. 2018. The state is demanding a trial by jury...