NC Among States Reaching Nearly $10 Million Settlement with Rotech over False Medicare and Medicaid Claims

Rotech automatically billed Medicaid and Medicare for portable oxygen contents regardless of whether the beneficiaries used or needed portable oxygen

NC Among States Reaching Nearly $10 Million Settlement with Rotech over False Medicare and Medicaid Claims
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July 6, 2018

North Carolina Attorney General Josh Stein announced this week that the state of North Carolina has reached a settlement with Rotech Healthcare Inc.—a Florida-based respiratory equipment supplier—over civil allegations that the company knowingly submitted false claims for portable oxygen contents to Medicaid and Medicare.

Billed for Oxygen, Regardless of Need

Between 2009 and 2012, Rotech automatically billed Medicaid and Medicare for portable oxygen contents, regardless of whether the beneficiaries used or needed portable oxygen and without obtaining the required proof of delivery. Rotech continued this practice despite knowing that it was submitting ineligible claims.

"Cheating Medicare and Medicaid means cheating the taxpayer," said Attorney General Stein. "My office will continue our work to keep fraud out of these important programs."

Settlement Details

The $9.95 million settlement with Rotech is joined by 22 other states and the federal government. North Carolina will receive a total of $43,671.23 from the settlement.

The North Carolina settlement agreement was reached by the Medicaid Investigations Division of the North Carolina Department of Justice and the North Carolina Division of Medical Assistance. A team appointed by the National Association of Medicaid Fraud Control Units participated in the investigation and conducted settlement negotiations with Rotech on behalf of the settling states.

Report all suspected cases of Medicare and Medicaid fraud to the North Carolina Attorney General's office.