Lawsuit Alleges Cigna Upcoded Tens of Thousands of Medicare Advantage Claims

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The U.S. Department of Justice has joined a whistleblower lawsuit accusing Cigna Corp. of overbilling Medicare Advantage by submitting false patient diagnosis information to inflate payments The lawsuit seeks damages and penalties under the False Claims Act. The whistleblower lawsuit originally was filed in 2017 in the United States District Court for the Southern District…

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Compounding Pharmacies to Pay $6.8M in Prescriptions-for-Money Scam

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Three pharmacies and a billing company have agreed to pay more than $6.8 million to resolve allegations that they violated the False Claims Act by waiving co-pays, charging the government higher prices than allowed, and trading federal healthcare business with other pharmacies. Those implicated are: DermaTran Health Solutions, LLC; Pharmacy Insurance Administrators, LLC; Legends Pharmacy;…

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Feds Use Data Analytics to Detect Fraud

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A Jacksonville-based healthcare provider accused of making false or fraudulent claims with the Florida Medicaid program agreed to pay $700,000 to resolve allegations it violated the False Claims Act. The case against Physicians Group Services resolves allegations that PGS submitted claims to Florida’s Medicaid program for quantitative urine drug testing that were medically unnecessary because…

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Texas MD Faces Significant Prison Time for TRICARE Fraud

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A Texas physician faces significant time behind bars after being convicted of engaging in a scheme to fraudulently bill TRICARE, for toxicology and genetic tests that were not provided as represented and/or were medically unnecessary. TRICARE is the healthcare program for uniformed service members, retirees, and their families,  Dr. Sekhar Rao, a vascular and interventional…

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American Senior Communities Settles for $5.5 Million in FCA Case

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Thanks to the work of a whistleblower, the U.S. Department of Justice recently settled with an Indiana-based skilled nursing and long-term care services company for $5.5 million to resolve allegations that it violated the False Claims Act. A former American Senior Communities (ASC) employee filed a whistleblower lawsuit in 2017 alleging that that ASC was…

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Healthcare Fraud Roundup

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Medical Clinic Fraud The owner of a Miami-based medical clinic was recently sentenced to 60 months in prison for directing a $38 million healthcare fraud scheme. Armando Valdes also was ordered to forfeit four real estate properties, including a beachfront condo in Pompano Beach, as well as numerous luxury vehicles, including a Cadillac Escalade and…

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Watchdog Agency Details Enforcement Activities During Six-Month Period

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The Department of Health and Human Services Office of the Inspector General (HHS-OIG) expects to make nearly $3 billion in recoveries resulting from the agency’s audits and investigations, according to its Semiannual Report to Congress released earlier this month. The semiannual reporting period runs from Oct. 1, 2021, through March 31, 2022. The watchdog agency…

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