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Medicare Billing Fraud

Medicare Billing Fraud

For the last 25 years, the most frequently filed qui tam cases have been in the healthcare area. In fact, $3 billion was recovered in health care cases in Fiscal Year 2012 alone. Many of the best qui tam cases concern Medicare Billing Fraud by providers of healthcare services to senior citizens and disabled persons, as well as billing fraud in other Government healthcare insurance programs, such as Medicaid (for indigent people) and Tricare (for US servicemen, women and families) and Champus (Tricare’s predecessor). Typically, the cases are brought by healthcare employees, sales representatives, consultants, competitors, and even patients or their families. The defendants have been hospitals and healthcare systems, skilled nursing facilities (SNFs) and nursing homes, hospices, pharmaceutical companies and pharmacies, durable medical equipment (DMEs) manufacturers, and doctors and physician practice groups. The cases involve allegations of Medicare Billing Fraud for reimbursements under Medicare Part A (hospital and institutional inpatient care), Medicare Part B (physician services and outpatient care), Part C (Medicare Advantage managed care) and Medicare Part D (prescription drugs).

1. What types of conduct constitute Medicare Billing Fraud?

If a healthcare provider is seeking payment for a service or product and knowingly doesn’t deserve to get paid as much as requested or even paid at all, it is likely the provider is committing Medicare Billing Fraud. Examples include: billing for services not rendered; upcoding diagnoses and procedures; using non-credentialed providers; providing medically unnecessary services and goods; falsifying certificates of medical necessity; violating HHS/CMS regulations and policies; paying kickbacks; making improper referrals; engaging in accounting and Cost Report fraud; promoting pharmaceutical off-label marketing; and providing substandard care.

2. What is a “claim” for reimbursement and do I have to have the actual invoices?

A “claim” under the False Claims Act is usually an invoice, bill or other written request for payment or reimbursement that is submitted to a Medicare contractor for payment. For Medicare Billing Fraud the actual claim form for Part A is typically the CMS Form UB-04 or UB-092 and/or the Cost Report. For Part B it is the Form 1500. For prescription drug cases, it is the Pharmacy Reimbursement Claim Form. For DME cases the key form is often the Certificate of Medical Necessity (CMNs).

Some courts in certain geographic jurisdictions require you to have at least one representative claim form (or its details); while other courts require only that you have good reason to believe that such claim forms were presented for payment. This is a complex legal issue that needs to be addressed on an individual basis.

"Tim McInnis is an amazing attorney. He is intelligent, thorough, ethical, kind and he works very strategically in order to insure the best outcome for his clients. I would trust him with my life. He is not only an excellent attorney, but he is a compassionate person."
Denise A. Romano, January 2004

"Tim McInnis is a superb lawyer for whistleblowers. As both a relator and a lawyer I worked with for more than three and a

On October 14, 2020, medical device maker Merit Medical Systems Inc. (MMSI), of South Jordan, Utah, agreed to pay $18 million to settle allegations the company helped submit false claims to the federal Medicare and TRICARE programs and numerous state Medicaid programs by giving kickbacks to physicians and hospitals to induce the purchase and use of MMSI’s durable medical equipment devices and products. NYC attorney Timothy J. McInnis was a member of the legal team that successfully represented the whistleblower in the case, Charles J. (“CJ”) Wolf, M.D., who was the former Chief Compliance Officer of MMSI.

 

According to Dr. Wolf’s complaint and the government’s settlement agreement, for over six years MMSI paid kickbacks to physicians, medical practices, and hospitals. The payments were made indirectly under the guise of free advertising assistance, practice development, practice support, and so-called “educational” grants. All of this was intended to induce the healthcare providers to purchase and use MMSI’s products, including EmboSphere devices, which are used for uterine fibroid embolization procedures, and QuadraSphere devices, which are used for other types of embolization procedures. Among other things, MMSI used local advertising campaigns to steer patients to healthcare providers as a reward for past sales and to increase future purchases of MMSI products. Dr. Wolf and the government further alleged that MMSI disregarded numerous internal warnings, including from Dr. Wolf, that MMSI’s sales practices potentially violated the healthcare Anti-Kickback Statute (AKS).

 

The lawsuit was filed in the federal court in District of New Jersey, where attorney McInnis formerly served as an Assistant U.S. Attorney. The case is captioned United States ex rel. Wolf v. Merit Medical Systems, Inc., No. 2:16-cv-01855-CCC-MF (D.N.J.). Of the $18 million MMSI is paying to settle the case, $15.21 million will be go to the U.S. Treasury, and the remaining $2.79 million will go to the approximately 30 individual states that also joined the lawsuit.

half years and his counsel and perseverance were always spot on. His work was critical to a successful settlement of the case."
Stephen B. Diamond, Esq., August, 2016

"Tim McInnis Law represented my case with the up most professionalism. He communicated with me at every turn of the case ensuring I understood the process as well what was to come next. His patience, comprehension of Qui Tam Law and persistence in getting me the highest amount possible out of the case is unmatched. I wouldn't hesitate to recommend his law firm for a minute."
Don A. Briscoe, September 2016

"Tim McInnis Law represented my case with the up most professionalism. He communicated with me at every turn of the case ensuring I understood the process as well what was to come next. His patience, comprehension of Qui Tam Law and persistence in getting me the highest amount possible out of the case is unmatched. I wouldn't hesitate to recommend his law firm for a minute."
Don A. Briscoe, September 2016

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