A Florida-based healthcare company has been ordered to pay $1.15 million to the state of Washington after an investigation uncovered fraudulent overbilling of Medicaid for oxygen equipment.
Lincare to Pay $1.15 Million in Medicaid Fraud Settlement, Washington AG Announces
The settlement, announced by Washington Attorney General Bob Ferguson’s office on Monday, stems from Lincare’s improper billing practices between January 2017 and March 2023.
Lincare provides in-home respiratory devices, including oxygen tanks, to patients with respiratory conditions across the United States. In Washington, the company operates a billing office in the Spokane Valley to manage its Pacific Northwest operations. Medicaid covers oxygen equipment rental fees for three years, after that time providers like Lincare may only bill for maintenance and supplies, not rental fees, for an additional two years.
The AG’s investigation found that Lincare billed rental fees beyond the allowed three years more than 15,000 times. In some instances, the company continued to bill Medicaid for rental fees for up to six years or double the legal time limit. This caused overbilling Medicaid for more than $500,000 on behalf of 565 Washington patients.
“This settlement ensures that Lincare is held accountable for its fraudulent overbilling practices and that Washington’s Medicaid program is reimbursed for these unlawful charges,” Ferguson said in the news release.
The investigation into Lincare is similar to a legal matter in 2023 when the company reached a $29 million settlement with the U.S. Attorney for the Eastern District of Washington. That settlement addressed allegations of Medicare fraud, including overbilling for oxygen equipment. As part of that resolution, Lincare agreed to make significant changes to its billing practices and hire independent experts to review its operations. Obviously, that did not happen.
Under the terms of the current settlement, Lincare will be required to fully comply with Washington’s oxygen leasing laws and implement internal controls to prevent future violations.
The Medicaid Fraud Control Division, which investigates Medicaid fraud and abuse in the state, has been actively pursuing fraud cases to protect both patients and taxpayer dollars. The division is funded by both federal grants and state Medicaid fraud recoveries. Washington residents are encouraged to report suspected Medicaid fraud through the Attorney General’s website or by calling the fraud hotline.
Lincare has not yet commented on the settlement. Read the full press release here.
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