Fraud is a consistent concern in the federal investigations especially on the major pharmacies that tend to overprice its medicines. Compounded are the mostly defrauded medicines since the Medicare program covers them. Examples of compounded drugs include the topical creams which are used to reduce pain at a faster rate. Due to their effectiveness, we tend to find that majority of the pharmacists taking advantage and hiking their prices to an unreasonable price. A good example was demonstrated by Tampa Pharmacy which increased the price of the medicines so as to earn unreasonable profits. Tricare’s spending on compounded medications, which typically combine multiple generic pharmaceutical ingredients into creams or gels, soared a $1.6 billion in 2015 tripled the amount spend in 2014.
In our case, it is crucial for us to understand that Tampa Pharmacy having overbilled military program caused a significant stir on matters of legal concern. By this, I mean that Tampa pharmacy, who’s the owner, goes by the name Reiner Gobea was charged with the guilt of charging the prices of pain creams excessively. According to the complaints raised by the military health program, these creams were overpriced by as much as $4,400 for popular pain creams when it was purchased by a Tricare patients, but charged just $45 for the same product by a regular customer buying it over the counter with out insurance. The impact of this fraud scheme violated the federal rules which prevent the pharmacists from charging military service members more than what they charge the general public (Leap, T. L., 2011). Charging high is considered as bribery and illegal business and hence the health system has a drafted a price schedule on how all medicines especially pain creams are supposed to be sold.
The significance of Tampa Pharmacy overbilling case on military health program is crucial in regards to business law considering that they are draining the Medicare for...