A company that provides oxygen equipment agreed to a $29 million settlement to resolve claims, brought by whistleblowers, that they were overbilling Medicare. It’s the largest-ever health care fraud settlement in the Eastern District of Washington.
Lincare Holdings, based in Florida, also agreed to extensive corrective actions, according to a news release issued by the U.S. Attorney’s Office in Spokane.
“I am appalled by Lincare’s admitted past practice of putting profits before its obligations to patients and to the Medicare program, and in particular by Lincare’s admitted improper practice of wrongfully collecting co-pays from elderly beneficiaries on fixed incomes and with limited means,” Vanessa Waldref, United States Attorney for the Eastern District of Washington, said in a statement.
The settlement requires Lincare to refund wrongful payments made by Medicare beneficiaries and sets up accountability measures to prevent future fradulent billing. Lincare did not respond to request for comment Monday.
Lincare provides equipment like oxygen tanks and concentrators in 49 states, excluding Hawaii, and in many rural communities is the only option, said Dan Fruchter, Assistant United States Attorney on the case.
Medicare reimburses providers, like Lincare, for the lease payments for three years until Medicare has paid the full price of the equipment.
Following the three-year period, Lincare is required to continue providing the equipment without reimbursement.
That rule...
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