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Friday, March 6, 2026

Waukesha medical company to pay $6.9M in false claims case - Wisconsin Law Journal

IN BRIEF

  • Federal investigators alleged the company billed Medicare and other programs for unnecessary medical braces.
  • The investigation began after a whistleblower provided information to federal authorities.

A Waukesha business has agreed to pay nearly $7 million to resolve allegations it violated the False Claims Act by submitting false claims to Medicare, TRICARE and other federal programs.

The U.S. Attorney office for the Eastern District of Wisconsin said this week that Kinex Medical Company, LLC agreed to pay $6,925,000 to resolve the case. Kinex sells and distributes durable medical equipment, including knee, shoulder, and hip braces, to patients across the United States.

After receiving information from a whistleblower, the United States investigated and alleged that the company submitted false claims to Medicare, TRICARE, the Federal Employees Health Benefits Program (FEHBP) and the Office of Workers Compensation Programs of the Department of Labor (OWCP).

The government alleged that from 2019 through 2024, Kiinex provided patients covered by these programs with medical braces that the patients did not need and then billed Medicare, TRICARE, FEHBP, and OWCP as if the braces had been necessary. The United States also alleged that Kinex convinced the patients to accept the braces by waiving costs like patient co-pays and by giving the patients other equipment for free.

In addition to paying nearly $7 million to resolve the allegations concerning these false...



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