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JAS agrees to settle false claims violation 

JAS agrees to settle false claims violation 

RALEIGH, N.C. - Joint Active Systems, a manufacturer of range-of-motion devices based in Effingham, Ill., has agreed to pay $500,000 to settle civil claims under the federal and North Carolina False Claims Acts concerning allegations the company caused submission of false claims to the North Carolina Medicaid program for certain DME. Specifically, the United States and the state of North Carolina alleged that from Jan. 6, 2012, through January 29, 2021, JAS was unable to directly bill North Carolina Medicaid for its “EZ” range-of-motion devices because the company did not meet North Carolina Medicaid requirements and/or lacked the necessary credentials necessary. The company allegedly bypassed those requirements by entering into arrangements with local North Carolina orthotics and prosthetics providers to bill the company’s “EZ” devices on its behalf. JAS allegedly directed the local North Carolina O&P providers to improperly submit claims for its “EZ” devices as orthotics using L-codes, thereby bypassing the medical necessity reviews and/or authorization processes that may have otherwise taken place. The governments alleged that the “EZ” devices did not qualify for reimbursement as L-code orthotics under North Carolina Medicaid, and that they were not listed as reimbursable devices on the North Carolina Medicaid fee schedule. JAS had actually received an official coding verification from CMS that designated its “EZ” devices as an E-code (DME). The government noted that the civil claims resolved by the settlement are allegations only and that there has been no judicial determination or admission of liability, and that JAS denies the allegations. 

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