The Connecticut U.S. Attorney’s Office and the Office of the Attorney General announced Thursday afternoon that they have entered into a civil settlement agreement with a medical equipment supplier that will pay $467,000 to settle allegations under the False Claims Act.
Orange-based Med Tech LLC has agreed to pay the settlement after an investigation found the company had billed the Medicaid program for transcutaneous electrical nerve stimulator devices and back braces that were not medically necessary. As part of the 20-page settlement agreement, the company is not admitting liability. Med Tech is enrolled as a provider in the Connecticut Medical Assistance Program, which includes the state’s Medicaid program.
The False Claims Act, also called the “Lincoln Law,” is a federal law that imposes liability on people and companies, typically federal contractors, who defraud government programs.
To resolve the allegations under both federal and state False Claims Acts, the company has agreed to reimburse the Medicaid program to cover conduct from January 2011 to June 2017. The settlement will reimburse both the federal and state’s shares of the Medicaid program, with Connecticut receiving 60 percent of the settlement funds.
“Med Tech inappropriately overcharged the state for medical equipment that was either not provided or not medically necessary. The Office of the Attorney General will aggressively pursue these types of schemes in order to deter this conduct and protect taxpayer-funded healthcare programs.” Attorney General William Tong said in a statement.
Connecticut U.S. Attorney John Durham said in a statement: “Medical equipment suppliers must bill Medicaid accurately, and we will continue to work with our federal and state partners to protect the integrity of all federal healthcare programs.”
Under the FCA, the government can recover up to three times the actual damages, plus penalties of $11,181 to $22,363 for each false claim.