Drugmaker Kickback Deal is not a covered loss, 7th Circ.  Toll - Law360

Drugmaker Kickback Deal is not a covered loss, 7th Circ. Toll – Law360

By Celeste Bott (September 9, 2022, 7:56 p.m. EDT) — A Chubb unit told the Seventh Circuit on Friday that it shouldn’t have to pay drugmaker Astellas $10 million for a settlement with the U.S. Department of Health. Justice to resolve an investigation into possible Medicare fraud, arguing that insuring what the company reimbursed for an intentional kickback program would only encourage such misconduct.

Federal insurance company. is appealing an Illinois federal judge’s October ruling holding it liable for paying the $10 million police limit because Astellas Pharma U.S. payments to the government as part of the $100 million was a loss under his policy.


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