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Texas Sues Eli Lilly Over Alleged Physician Kickbacks for Zepbound and Mounjaro

The filing seeks to reveal whether support services steered prescribing, increasing state Medicaid costs.

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As per the filing, Lilly is alleged to have participated in two schemes to induce and influence providers. Credit: Jennie Book via Shutterstock.com.

Overview

  • Attorney General Ken Paxton filed a lawsuit on behalf of Health Choice Alliance LLC alleging that Eli Lilly provided free nurses and administrative support to doctors who prescribed Zepbound, Mounjaro and about a dozen other medications.
  • The complaint claims these incentives steered prescribers to favor Lilly’s weight-loss and diabetes treatments and generated millions of dollars in tainted claims to Texas Medicaid.
  • Eli Lilly issued a statement denying the allegations, noting that multiple courts and federal authorities previously dismissed similar claims by the same relator for lacking factual and legal support.
  • Paxton said the action builds on last year’s insulin pricing lawsuit and could trigger extensive discovery into pharmaceutical support programs for prescribers.
  • Health Choice Alliance’s credibility is under scrutiny after earlier qui tam claims against Lilly were moved to dismiss by the U.S. government for insufficient support.