Durable medical equipment company Numotion has agreed to pay $7 million to resolve allegations it submitted false claims for reimbursement to Medicaid programs.
Numotion allegedly submitted false claims to Kentucky Medicaid, two of the state's managed care contractors, Missouri's Medicaid program and District of Columbia Medicaid, according to a March 1 Justice Department news release.
The Justice Department alleged that Numotion did not disclose all the discounts it received from, or the cost it actually paid to, equipment manufacturers when submitting manually priced DME claims to the Medicaid programs. As a result Medicaid, paid Numotion higher reimbursements than it should have received.
The settlement resolves a whistleblower lawsuit brought forth by a former Numotion employee, according to the release. The employee will receive about $1.05 million of the settlement amount.