Clearwater, Fla.-based Lincare, a medical equipment company, has been ordered to pay $1.15 million to reimburse Washington's Medicaid program for alleged fraudulent overbilling of leased oxygen equipment.
According to a Jan. 13 news release from the state attorney general, Lincare provinces in-home respiratory devices to patients throughout the U.S., including in Washington. The company runs an in-state billing office that manages operations throughout the region. Under state law, Medicaid pays rental fees on oxygen equipment for three years. For two years, Lincare and similar companies can continue to bill for maintenance and supplies, but may no longer charge rental fees.
The state alleges that between January 2017 and March 2023, Lincare knowingly billed rental fees beyond the allowed three years more than 15,000 times. In some instances, according to the release, Lincare continued to bill Medicaid for six years.
The attorney general estimated that during this time, Lincare overbilled Medicaid for 565 Washington patients by more than $500,000.
In August 2023, Lincare also entered a $29 million agreement with the U.S. Department of Justice that would require the company to make significant reforms to its billing practices and retain independent experts to review its claims.