Whistleblower Uncovers Medicare Fraud

On Aug. 17, 2012, Law360.com published an article entitled: “US Joins FCA Suit Over Orthotics Co. Billing

Law360.com reported that a whistleblower suit against Dynasplint Systems Inc. (“Dynasplint”) was recently unsealed by a federal judge after the U.S. government decided to intervene in the suit.A former Dynasplint sales executive brought suit against the company and alleged that the company was billing Medicare for free orthotics provided to skilled nursing facilities.The complaint alleged that Dynasplint was directly billing Medicare Part B (which covers medical devices) for orthotics sold to patients in skilled nursing facilities even though they are already being reimbursed by Medicare Part A and Medicaid.

Whistleblower Meredith Deane filed the qui tam suit in federal court in May 2010.She stated: “[t]he orthotics should be billed to the facilities as part of their daily reimbursement rates under Medicare Part A and Medicaid” however, “Dynasplint is knowingly coding its Medicare claim forms to indicate that the orthotics were given to patients at custodial care facilities” and billing under Medicare Part B.

The whistleblower also claimed retaliation after she was terminated by Dynasplint for uncovering the fraud.

SOURCE: http://www.law360.com/articles/370644/us-joins-fca-suit-over-orthotics-co-billing