Medtronic sued for paying doctors to promote unapproved uses of treatment
Humana, one of the nation's largest health insurers is suing Medtronic, alleging that the medical device maker violated federal racketeering laws by paying influential doctors to promote unapproved uses of a bone-growth treatment.
In the suit filed last week in federal court in Tennessee, Humana charges that Medtronic paid at least $210 million to leading spine surgeons. Humana claims that compensated physicians minimized the dangers and exaggerated the effectiveness of the product.
The insurer, based in Louisville, Ky., said it would not have covered Infuse if it had known more about the product.
Physicians, Congressional leaders and others have long raised questions about the safety of Medtronic's Infuse treatment when doctors use it in ways regulators have not approved. Such use, however, is not against the law.
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But Medtronic spokesman Eric Epperson said the lawsuit is baseless.
"The potential risks and the benefits of Infuse bone grafts have been described in the product labeling since 2002 and all payers have had access to that information," Epperson said. "We will continue to vigorously defend the product and our actions in court."
Humana is suing Medtronic under the federal Racketeer Influenced and Corrupt Organizations Statute known as RICO.
"It's viewed as a very serious cause of action because if you're found liable under RICO, you're automatically liable not just for the actual harm caused but three times the value of the actual harm," said Jeffrey Grell, a Minneapolis attorney who has been on both sides of RICO lawsuits.