WASHINGTON – Providers of medical equipment in two hotbeds of Medicare fraud – Los Angeles and South Florida – will have to reapply to do business with the government and undergo inspections, officials said Monday.
Thousands of elderly and disabled beneficiaries in those two regions have received power wheelchairs, walkers and other items they did not require. In other cases, sham businesses billed Medicare for equipment never ordered by a doctor nor delivered to a patient.
The fraud is believed to run into the hundreds of millions of dollars. In one case, a supplier billed the government $2 million for the same wheelchair. They billed Medicare repeatedly, but each time on behalf of a different beneficiary.
In another case, a company called Faster Medical Equipment billed the government enough that the owner could buy a Rolls-Royce. When inspectors visited the company, it was little more than a broom closet, said Leslie V. Norwalk, acting administrator for the Centers for Medicare and Medicaid Services.
Under the new program, about 7,500 suppliers will be required to submit an application within 30 days of getting a request to do so. Officials think that effort alone will winnow out scores of suppliers. Those suppliers that send in applications will then be subject to stepped up inspections.
“We feel we can stop a lot of the billing before it starts,” Norwalk said. Medicare pays for equipment that is used primarily for a medical purpose and generally only useful when participants have an illness or injury. She said the program could be rolled out to other regions in future years, and she cited New York City in particular as the next potential target.
Currently, suppliers of medical equipment are required to be inspected once in their first year of doing business with the program, but Medicare officials said some owners knew the government lacked the resources to visit again, Norwalk said. This time, more support staff will be available to conduct follow-up visits.
One of the trade associations that represents medical equipment providers said the steps outlined by Medicare officials Monday were long overdue. “Procedures that prevent fraud from the outset are essential and we applaud proactive steps by Medicare,” said Michael Reinemer of the American Association for Homecare.
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To report Medicare or Medicaid fraud call 1 (888) 482-6825 or visit http://www.usawhistleblower.com./
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