OIG report includes DME items

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Tuesday, June 2, 2015

WASHINGTON – The Office of Inspector General included in its semiannual report to Congress a recommendation that the New York Medicaid program could have saved an estimated $8.9 million for selected DME by using pricing from Medicare’s competitive bidding program. Under recently completed actions and settlements, the OIG also reported that it has ordered OtisMed Corp., a biotech company that manufactures and sells knee replacement devices, to pay $34.4 million in fines and $5.1 million in forfeiture after pleading guilty to distributing, with intent to defraud and mislead, adulterated medical devices; and has ordered Maritza Velazquez, an office manager at Lutemi Medical Supply, a DME company in Carson, Calif., to pay $3.4 million in restitution after pleading guilty to conspiracy to commit healthcare fraud.