Arriva Medical appeals revocation

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Thursday, December 29, 2016

WALTHAM, Mass. – The parent company of Arriva Medical, a contract supplier under Medicare’s national mail-order program for diabetes testing supplies, has filed an appeal with the administrative law judge seeking to reinstate its billing status.

Arriva Medical expects the ALJ to hear its appeal within 30 days and issue a decision in three months, it stated in a Dec. 28 update on its website.

“We believe the recent action by CMS to remove Arriva from CMS billing is unlawful, arbitrary and capricious, and harmful to the more than 500,000 patients who depend on Arriva for these critical supplies,” it stated. “We are confident that Arriva is in compliance with CMS guidelines and look forward to an expeditious and favorable outcome.”

CMS revoked Arriva Medical’s billing privileges in November for allegedly submitting 211 claims for deceased patients between April 15, 2011, and April 25, 2016.

Arriva Medical says any errors were the result of “Medicare system flaws.”
Additionally, “the number of purported instances cited by CMS is de minimis relative to the nearly 5.8 million total claims filed by Arriva during that same period,” it stated.

In addition to the appeal, Alere has filed a complaint and related motions in the U.S. District Court for the District of Columbia seeking to compel CMS to stay the process regarding the competitive bidding contract termination while the ALJ appeal is ongoing and to compel CMS to provisionally reinstate Arriva’s billing number while the company pursues the ALJ appeal. It expects a decision on the complaint on or about Jan. 5.

Arriva Medical received a letter from CMS on Oct. 12, informing the company that effective Nov. 4, the agency was revoking its supplier billing number and barring it from re-enrolling in the Medicare program for three years. Then on Nov. 2, CMS upheld its decision based on a four-day, mechanical review.

“CMS reached this conclusion in spite of evidence provided by Arriva demonstrating that any errors were primarily the result of Medicare system flaws,” Arriva Medical stated.

Arriva Medical says it is confident in the merits of the case because:

·      Arriva and the Medicare beneficiaries its serves will suffer irreparable harm if injunctive relief is not granted;

·      The balance of equities and the public interest are decidedly in favor of Arriva;

·      Arriva is likely to succeed on the merits of the case because CMS’s action are depriving Arriva of protected property and liberty interests without due process; and

·      CMS’s refusal to grant Arriva a pre-termination hearing violates due process.