Former Insys employee says company asked them to lie to insurance reps: Part 2

Patty Nixon said the company would ask employees to pose as someone from the doctor's office to misrepresent diagnoses to insurance reps.
7:35 | 03/08/19

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Transcript for Former Insys employee says company asked them to lie to insurance reps: Part 2
Reporter: At insys therapeutics, Patty Nixon says lying was part of the job. We're instructed to say we were calling from the physician's office that was treating that particular patient. Reporter: Even though you knew you were calling from the pharmaceutical company. Correct. I was in a very small office in Chandler, Arizona, and I would call Alaska and say I was from Alaska. And sometimes I was from Hawaii. I was from wherever the patient was from, and wherever the doctor was located. Reporter: Her role, she says, getting insurance companies to sign off on payments for subsys prescriptions. One part of a years-long scheme that cheated millions of dollars, including from medicare. The lies based on a script Patty says that insys executives instructed her to follow, what they called the spiel. A lot of it was word games. When the insurance company would ask the question, does the patient have cancer with break through cancer pain, and when we would respond, we would say yes, we're treating the break through pain. So eliminating the word cancer. Reporter: What's the most haunting part of it for you? That people have died and that, knowingly or unknowingly, it doesn't matter. I was a part of it. Just quirky. She was really sweet. Reporter: There is a quiet stillness in Devora's home. Here, her daughter Sarah was planning her wedding. She was over the moon. Reporter: Sarah was battling chronic pain after a series of car accident. They eventually turned to a new Jersey physician. ? I said Sarah is addicted to painkillers. So when you deal with her chronic pain, you got to find another avenue. Reporter: But Devora says the doctor disregarded the family's plea. In January 2015 she prescribed Sarah subsys, a fentanyl spray specifically for severe cancer pain in an appointment that was accompanied by an insys rep. And one day later, that sales rep texting her manager about how to get the doctor into the insys speakers program, a front, prosecutors say, to bribe doctors for prescribing their drug. What is the patient's last name and date of birth? The last name is fuller. This is the ledger. Reporter: The family's attorney, Richard Hollowell says he was able to track down exactly how Sarah got that fatal prescription. Getting a subpoena for the phone call from the rep pretending to be from the doctor's office. You're calling from the doctor's office, correct? I would call it the murder weapon, the smoking gun. Reporter: Then misrepresenting her diagnosis. Okay. And what's diagnosis for the Let me look here, medication intended for the management of break through cancer pain. When I found out what it was designed for, to put these people in comfort when they're terminal, but why was Sarah taking it? She did not have cancer at all. If they did not make that call she would never have been approved for the drug. This is the carton that would come to Ms. Fuller's home. Reporter: This looks like a drugstore. This box alone is really Reporter: This is one month's supply. This is one month's supply, a 600 micro gram spray. Reporter: And this is $24,000 worth of pharmaceuticals in one In this box. Reporter: As insys and John capoor's valuation climbed into the billions, Sarah fuller's life was spiraling out of control as medicare paid more than $250,000 for a drug her family says she should never had. She was extremely lethargic. Her complexion paled. It was literally killing her. Reporter: Just under 15 months after Sarah began taking subsys, she died. She was 32 years old. Her family sued insys and the doctor for negligence and wrongful death. Sarah loved butterflies. Purple. Her wedding day, we all met here, her fiance, us. It was just really surreal, because we should be in a church. Watching her walk down the aisle. And go to a great reception. But that's not how it happened. I feel like if I would have spoke up sooner then maybe I could have saved her life. You know. I don't think people really understand what it's like to live with this. Reporter: Patty had left insys before Sarah fuller's death, consumed by guilt and regret for her role in the prescription of subsys to countless patients. She testified before a grand jury during the indictment of insys' former CEO. It was really scary. I had to tell the truth. I had to tell my job was and what I did. And what I did was illegal. So that was, that was really scary. I wasn't sure what was going to happen to me. Reporter: And you were willing to face the consequences. Absolutely. Reporter: You weren't asking to get out of -- No. Reporter: Responsibility. No. I didn't, I didn't ask for any plea deal. I'm not trying to profit from this in anyway, shape or form. Reporter: Last marks the new of medical examiners revoked Dr. Madalon's medical license, the doctor claimed she was misled, they reached a settlement for an undisclosed sum without acknowledgement of wrongdoing. Meanwhile, the trial of executives continues through April. What would you say to him if he was in this room right now? First of all, I'd say you killed my daughter and I hope you rot in prison. I hope you die in prison, you don't deserve to be out in the world because you poisoned it. Reporter: Do you think a fine is enough? No, absolutely not. That would fuel the industry practices that have fueled this opioid epidemic, and that would be disastrous. Who's got the time to chase around down dirt, dust and hair?

This transcript has been automatically generated and may not be 100% accurate.

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