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News

Two face sentencing in test strip fraud

May 23, 2024HME News Staff

MIAMI – Two South Florida men recently pleaded guilty to conspiracy to commit health care fraud for their role in a diversion scheme involving the distribution of adulterated and misbranded diabetic test strips.   Howard Neil Frank of Marco Island, Fla., owner of two diabetic test strip wholesale businesses, Wholesale Diabetic Supplies Inc and HMF Distributing Inc, and Perfecto Fermin Hallon of Miramar, Fla., former president of another diabetic test strip wholesale business, Medical...

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Roche sues pharmacy network

March 22, 2019HME News Staff

NEW YORK - Roche Diagnostics has filed a lawsuit against the former executives of a Utah-based company, alleging nationwide fraud involving test strips.According to the lawsuit, filed March 19 in United States District Court in New Jersey, Alliance Medical Holdings and its former officers and directors conspired to obtain Roche's not-for-retail test strip brands meant for the mail-order market and dispense them to the retail market.Alliance then allegedly billed the insurance companies for retail...

Diabetes, Roche Diagnostics Corp., test strips


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Shutdown and HME: StripSupply offers free diabetes testing supplies

January 23, 2019HME News Staff

BOSTON - StripSupply will be waiving monthly subscription fees for both diabetes test strips and lancets for federal employees affected by the government shutdown. The company says with one in 10 people living with diabetes and with the cost of supplies often more than $500 out-of-pocket per month, “StripSupply does not wish for any federal employees living with diabetes to suffer from any additional stress, while they attempt to maintain their physical health and to cover expenses for housing...

Diabetes, gov't shutdown, StripSupply, test strips


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StripSupply secures funding

June 27, 2018HME News Staff

BOSTON - StripSupply has secured seed round funding led by LaunchByte Ventures, alongside a group of serial entrepreneurs, physicians and angel investors. StripSupply, which seeks to disrupt the $11 billion glucose test strip market, provides FDA-approved strips on a subscription basis for up to 85% less than major retail pharmacies, it says. “The retail price for diabetic test strips at major pharmacies can be more than $100 for a 50-count vial; however, the manufacturing cost doesn't typically...

Disruption, Investment, StripSupply, test strips


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In brief: Philips buys pharmacy sleep services provider, Roche sues over alleged rebate scheme

March 31, 2017HME News Staff

AMSTERDAM, the Netherlands, and SYDNEY - Royal Philips has signed an agreement to buy Australian Pharmacy Sleep Services, in a move that the company says will accelerate its home sleep testing offering through the pharmacy channel in Australia.“With the addition of APSS to our sleep and respiratory care business in Australia, Philips will be able to provide better access to home sleep testing for those who need it, where and when they need it,” said Kevin Barrow, managing director at...

Lawsuit, Philips, Roche, Sleep Therapy, test strips


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Roche sues pharmacies, supply companies

March 31, 2017HME News Staff

INDIANAPOLIS - Roche Diagnostics and Roche Diabetes Care have filed a lawsuit in the U.S. District Court of Indianapolis, claiming they have wrongfully paid millions of dollars in rebates and lost millions of dollars in legitimate sales for blood glucose test strips at the hands of an alleged scheme by six pharmacies and medical supply companies. The lawsuit charges the pharmacies and medical supply companies with allegedly obtaining test strips from Roche that were intended for reimbursement under...

Lawsuit, Rebates, Roche, test strips


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Reports point to mounting evidence of brand shakeup for diabetes supplies

June 27, 2014Theresa Flaherty, Managing Editor

WASHINGTON - Medicare's mail-order program for diabetes supplies has had a dramatic impact on the market, as evidenced by a pair of recent reports from the Office of Inspector General (OIG).“This is a rough look at what's available in the marketplace and it doesn't represent what was available in the marketplace prior to bidding,” said Andrea Bergman, a vice president with McDermott+Consulting, the lobbying subsidiary of a law firm that represents the Diabetes Access to Care Coalition.The...

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In brief: Lawmakers try to put brakes on bid expansion, contractors warn docs of DME scams

March 21, 2014HME News Staff

WASHINGTON - Reps. Glenn Thompson, R-Pa., and Bruce Braley, D-Iowa, are spearheading a congressional sign-on letter urging CMS Administrator Marilyn Tavenner not to expand competitive bidding until the Office of Inspector General (OIG) has completed its investigation into the program, according to AAHomecare. “It's no secret that policymakers on both sides of the aisle see the controversial national bidding program as an unacceptable burden on the elderly and disabled,” stated Tom Ryan,...

Bidding, Medline, Ottobock, scams, test strips, U-Sleep, Universal Software


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N.J. Medicaid could save by cutting test strip prices, OIG says

September 11, 2013HME News Staff

WASHINGTON - Reducing reimbursements for blood glucose test strips to retail rates or establishing competitive bidding pricing could have saved New Jersey's Medicaid program between $1.8 million and $2.7 million in 2011, the OIG reported in a Sept. 11 report. During calendar year 2011, reimbursement from New Jersey's four Medicaid managed-care organizations was $3.1 million more than retail prices and $4.5 million more than competitive bidding pricing, according to the report. Reducing the...

Medicaid, New Jersey, Office of Inspector General (OIG), Reimbursement, test strips


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Inappropriate, questionable billing for test strips, says OIG

August 27, 2013HME News Staff

WASHINGTON - Medicare inappropriately allowed $6 million in claims for diabetes test strips in 2011, according to a report from the Office of Inspector General (OIG). The claims were for beneficiaries without a documented diagnosis code for diabetes, or for beneficiaries who were in hospitals or skilled nursing facilities. The OIG also found that $425 million in Medicare-allowed claims had characteristics of questionable billing, and that suppliers in 10 geographic areas nationwide were responsible...

Diabetes, Office of Inspector General (OIG), Questionable billing, test strips


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