medical scandals

TOPICS Video Cafe

Countdown: United Health Group's Stephen Hemsley

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Keith has the run down on United Health Group's Stephen Hemsley who's leading the charge against health care/insurance reform and who was recently sending employees armed with talking points to attend protests and town halls. First up, his campaign donations from OpenSecrets: United Health Group Contributions to Federal Candidates:

House
Total to Democrats: $138,700
Total to Republicans: $100,500

Senate
Total to Democrats: $71,500
Total to Republicans: $58,300

Next we have the lawsuit they settled just one week before President Obama took office. Health insurer accused of overcharging millions:

One of the nation’s largest health insurers has agreed to pay $50 million in a settlement announced today after being accused of overcharging millions of Americans for health care.

The New York attorney general’s office launched an investigation after receiving hundreds of complaints about Oxford Insurance and its parent company, UnitedHealth Group, which claims to rely on “independent research from across the health care industry” to determine reimbursement rates. In actuality though, it relies on Ingenix, a research firm owned by UnitedHealth Group.

New York Attorney General Andrew Cuomo says Ingenix has been manipulating the numbers so insurance companies pay less. In a just-released report, he contends that Americans have been “under-reimbursed to the tune of at least hundreds of millions of dollars.” Although UnitedHealth Group and Oxford Insurance were the only entities investigated, other major insurers use Ingenix, including Aetna, CIGNA and WellPoint/Empire BlueCross BlueShield.

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TOPICS Newstalgia

The FDA and Thalidomide - August 1962.

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(Thalidomide - when wonder drugs went awful)

One of the bigger scandals to hit the pharmaceutical industry came in the form of Thalidomide, a drug marketed throughout Europe in the late 1950's as sedative, pain killer and a morning sickness preventative for pregnant women.

Only it wasn't. By 1960 the drug was widely available throughout the world (even as an over-the-counter item in Germany) and the horrible side effects came to light. Children born with an alarming number of birth defects, most in the area of gross deformities.

By 1961, the FDA instituted a recall of Thalidomide and banned its use. But the question was, why did the FDA take so long to make these horrific discoveries and why did they wait almost a year to get them off the market?

As a result, the FDA utilized more stringent testing - although judging from the amount of drug recalls and related scandals the past several years, it would give pause to the idea that the system is foolproof.

Oddly enough, Thalidomide has made something of a comeback in recent years, not as a antidote for morning sickness but as a treatment for skin lesions and multiple Myeloma and other cancer forms.

This interview, from the ABC Sunday series "From The Capitol" from August 12, 1962 features George P. Larrick, Commissioner of the FDA talking about the Thalidomide scandal and the FDA's role in public safety.

It would be nice if we were out of the woods over future Thalidomide scandals. But that's not likely.