FBI raids contract supplier

Owner told Senate in 2013: ‘I want to play by the rules’
Thursday, January 15, 2015

BOCA RATON, Fla. – The FBI raided the offices of Med-Care Diabetic and Medical Supplies Wednesday morning.

Representatives of the local police department, the Florida Division of Insurance Fraud, the Internal Revenue Service and the Department of Homeland Security also participated, according to a local news report. Employees were sent home.

It’s not the first time the company has come under scrutiny. Med-Care president Dr. Steve Silverman was one of two HME providers subpoenaed by Sen. Claire McCaskill, D-Mo., to testify at a 2013 hearing before the Senate Subcommittee on Financial and Contracting Oversight. The company had been the subject of complaints for its marketing practices.

At the hearing, Silverman said: “We are regulated, we are inspected, and whatever rules and regulations there are, I give it my best effort for myself and all my employees for us to follow this. I want to play by the rules.”

Med-Care holds a national Medicare mail-order contract for diabetes testing supplies. In 2013, the company received nearly $11.2 million in reimbursement from Medicare for the supplies, according to the HME Databank.