News in brief - Aug. 15, 2005

Frist wants more federal dollars for embryonic stem cell research - More money for veterans health - Fla. attorney general accuses drug companies of Medicaid fraud

Frist wants more federal dollars for embryonic stem cell research

Drawing support from former First Lady Nancy Reagan and a number of groups that raise money to find cures for diseases, and drawing criticism from groups such as the Christian Medical & Dental Assn. and anti-abortion organizations, Senate Majority Leader Bill Frist, MD (R, Tenn.), on July 29 announced his support for more government-funded embryonic stem cell research.

Dr. Frist said that he supports a bill that includes a strong ethical and scientific oversight mechanism and one that allows the government to pay for research on human embryos created for fertility treatments but no longer needed. The embryos also would need to be slated to be discarded or destroyed, and those who received the fertility treatments must give their written consent for the research.

His support is likely to garner enough votes to pass a Senate bill that would ease funding restrictions put in place in 2001. A similar bill has already passed in the House, but at press time it was unclear whether it could pass either chamber by the two-thirds majority needed to overcome a presidential veto.

Bush's current policy only allows federal dollars to be used on embryonic stem cell lines created on or before Aug. 9, 2001.

More money for veterans health

Congress in late July agreed to spend $1.5 billion to plug a shortfall in the health care budget at the Dept. of Veterans Affairs.

Lawmakers attached the funding to an unrelated appropriations bill that they sent to the White House before departing for the August congressional recess. President Bush's signature will clear the way for officials to use the money on VA health programs in the current fiscal year, which ends Sept. 30.

Administration officials revealed in June that the department significantly underestimated the costs of treating servicemen and -women returning from Iraq and Afghanistan. That prompted Congress to scramble to approve extra money to keep the programs in the black. The White House has already altered its original fiscal year 2006 budget request to ask for an additional $2 billion for veterans health. Veterans medical services are set to receive about $24 billion with the amended request.

Fla. attorney general accuses drug companies of Medicaid fraud

Florida Attorney General Charlie Crist last month filed a lawsuit against three pharmaceutical manufacturers, alleging that they committed Medicaid fraud that cost the state program $25 million.

The lawsuit claims that Mylan Laboratories Inc., Canonsburg, Pa.; Israel-based Teva Pharmaceutical Industries Ltd. and Watson Pharmaceuticals Inc., Corona, Calif., violated the Florida False Claims Act. The law allows the state to recover triple the damage amount, meaning it could recover $75 million. This is the third such lawsuit Crist has filed against drug manufacturers in the past two years.

The lawsuit accuses the companies of inflating their price estimates of drugs, allowing pharmacies to receive excessive reimbursement for them. Crist alleges the companies used the scheme to convince pharmacies to sell more of its products.

Representatives from Mylan and Watson declined to comment on the allegations. A Teva spokesman did not return a call seeking comment.