Two Dozen Charged in Medical Equipment Scam

HELENA, Mont. (NMB) – The Department of Health and Human Services Office of Inspector General, with our law enforcement partners, announced this month their efforts in dismantling one of the largest healthcare fraud schemes ever investigated, in terms of amount billed to Medicare.

A press release says that 24 defendants in seventeen federal districts were charged for allegedly participating in the scheme, in which fraudsters submitted over $1.7 billion in Medicare claims and were paid over $900 million.

In the alleged scheme, medical professional working with fraudulent telemedicine companies received illegal kickbacks and bribes from medical equipment companies in exchange for prescriptions for medically unnecessary orthotic braces. The medical equipment companies then used the prescriptions to fraudulently bill Medicare.

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