SPOKANE, Wash.-A Florida based chemical corporation will pay $29 million to resolve claims it overbilled Medicare patients for oxygen equipment, including some in eastern Washington.
The settlement, announced by U.S. Attorney Vanessa Waldref, on August 28 is the largest-ever health fraud settlement in eastern Washington.
“One of the most important responsibilities we have is protecting vulnerable members of our community such as the elderly,” said U.S. Attorney Waldref.
Lincare Holdings, Inc is a company that provides oxygen equipment for patients with respiratory illness, including oxygen tanks and portable oxygen concentrators. Companies like Lincare are then reimbursed through Medicare for the lease payments of oxygen equipment for three years.
According to a press release from Waldref’s Office announcing the settlement, medical supply companies are required to continue to provide oxygen equipment, but were no longer eligible for reimbursement from Medicare.
After three years of reimbursement payments Lincare was supposed to continue providing the equipment to patients, but was legally not allowed to charge rental payments or co-payments to patients.
As part of the $29 million settlement Lincare admitted to improperly billing Medicare and beneficiaries for oxygen equipment, as well as acknowledging that safeguards to prevent overbilling were not always effective according to today’s press release.
Lincare also admitted that when employees raised concerns about overbilling to superiors in Spokane Valley and Clearwater, Florida, they were told that the billing practices would continue.
According to the press release announcing the settlement Lincare has also agreed to enter into a 5-year Corporate Integrity Agreement to ensure that overbilling does not happen again.
