Florida-based medical supplier Lincare Holdings agreed to pay $29 million to resolve allegations it fraudulently overbilled Medicare and Medicare Advantage Plans for oxygen equipment.
The company, a wholly-owned subsidiary of German multinational chemical corporation Linde, also agreed to perform corrective actions, according to an Aug. 28 Justice Department news release.
As part of the settlement agreement, Lincare admitted it improperly billed Medicare, Medicare Advantage Plans and beneficiaries for oxygen equipment rental payments and co-payments after it had already received three years of payments, according to the release. Lincare also admitted it lacked adequate controls to ensure Medicare Advantage plans were not improperly billed. It said it had controls in place for Medicare recipients, but those controls were not always effective.
Lincare admitted that when employees raised concerns about the billing practices, officials instructed them that the company would continue its billing practices, according to the release. Two whistleblowers will receive more than $5.6 million of the settlement amount.