ObamaCare Not Subject to Federal Anti-Kickback Laws; CNN Still Hasn't Reported It

The Obama administration exempted the federal exchanges and subsidies in ObamaCare from federal health laws against kickbacks, fraud, and bribery, the New York Times reported last week. CNN has ignored this story, however.

The Times stated: "The surprise decision, disclosed last week, exempts subsidized health insurance from a law that bans rebates, kickbacks, bribes and certain other financial arrangements in federal health programs." Commentary magazine noted that "it encourages precisely the kickback schemes this statute was put in place to prevent."

Commentary also highlighted the irony in the administration's prosecution of Johnson & Johnson for kickbacks:

"And the inconsistency is the giveaway: the Justice Department is prosecuting high-profile companies (like Johnson & Johnson) for a practice the government plainly considers an illegal kickback scheme. And yet now that same government is giving the green light to the practice, which will be a financial boon to the companies that helped ObamaCare pass in the first place."

CNN did report this story. Anchor Ashleigh Banfield stated on November 4:

"Health care giant Johnson & Johnson, has agreed to pay more than $2.2 billion to settle claims that it marketed three drugs for unapproved uses. The drugs in question are Risperdal, Invega and Natrecor. The payout also covers claims that the company paid kickbacks to doctors and at least one pharmacy. The Justice Department calls this one of the largest health care fraud settlements in United States history."

Matt Hadro
Matt Hadro
Matt Hadro was a News Analyst for the Media Research Center's News Analysis Division from 2010 through early 2014