MYNORTHWEST NEWS

Healthcare company pays Washington more than $1M for overbilling

Jan 13, 2025, 1:18 PM | Updated: Jan 14, 2025, 6:00 pm

bellevue...

A gavel. (Photo: Joe Gratz via Flickr Creative Commons)

(Photo: Joe Gratz via Flickr Creative Commons)

A healthcare company was ordered to pay the state of Washington more than $1 million, according to a news release from the Washington State Attorney General’s (AG) Office on Monday.

The AG’s Office stated a Medicaid Fraud Control Division investigation revealed Lincare Inc., which provides oxygen tanks, overbilled its patients. Therefore, the company was ordered to pay out $1.15 million.

“This will reimburse the state’s Medicaid program for Lincare’s fraudulent overbilling of leased oxygen equipment,” the AG’s Office said.

According to the news release, Lincare is headquartered in Florida and provides in-home respiratory devices to patients throughout the U.S. It also offers services such as renting and servicing oxygen equipment to patients with respiratory conditions who rely on the equipment to breathe. The company keeps a billing office in Spokane Valley to manage Pacific Northwest operations.

The Washington budget mystery: How big is the state’s deficit really?

The AG’s Office noted Medicaid provides oxygen equipment on a five-year contract and, under Washington law, Medicaid pays rental fees on oxygen equipment for three years. Providers like Lincare can continue to bill for maintenance and supplies for an additional two years, but may no longer charge rental fees. The AG’s Office said after that, the device is eligible for replacement.

Washington State Attorney General Bob Ferguson asserted between January 2017 and March 2023, Lincare knowingly billed rental fees beyond the allowed three years more than 15,000 times. In some instances, Ferguson said Lincare continued to bill Medicaid rental fees for six years, twice the legal limit.

“The Attorney General’s Office Medicaid Fraud Control Division estimates Lincare overbilled Medicaid for 565 Washington patients by more than half a million dollars,” the news release stated.

However, this isn’t the first time Lincare has owed the state money. In 2023, the company entered into a $29 million resolution with U.S. Attorney for the Eastern District of Washington Vanessa Waldref. The Attorney’s Office for the Eastern District of Washington called it the “largest-ever healthcare fraud settlement in Eastern Washington.”

Waldref announced Lincare agreed to pay $29 million and “perform extensive corrective actions to resolve allegations that it fraudulently overbilled Medicare and Medicare Advantage Plans for oxygen equipment,” as stated in a news release.

Local crime: Edmonds Police searching for 5 suspects involved in waterfront shooting

According to the AG’s Office, the 2023 resolution required the company to “significantly” change its billing practices and, at its own expense, hire independent experts to review its work. Shortly after Waldref’s resolution, the Medicaid Fraud Control Division’s investigation began.

The news release stated as part of the legal agreement, Lincare will have to comply with Washington’s oxygen leasing laws and will also ensure it has internal controls to prevent further violations.

Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X and email her here.

MyNorthwest News

Chase Sapphire Lounge coming to SEA airport under $70M project...

Regan Gallo-Fenz

Chase Sapphire Lounge coming to SEA airport under $70M project

New upgrades at Seattle-Tacoma International Airport (SEA) are giving Chase Bank cardholders even more reasons to arrive early for their flights.

2 hours ago

Spokane County's Wildfire Heroes Recognized on National Stage in NYC....

Regan Gallo-Fenz

Spokane County’s wildfire heroes recognized on national stage in New York City

Firefighters and law enforcement officers from Spokane County were honored in New York City for their response to the Spokane Complex Fires.

14 hours ago

Tacoma Narrows Bridge (4)...

Nate Connors

WSDOT completes Tacoma Narrows Bridge repairs one week early

Pierce County commuters were handed some good news when WSDOT announced that it had completed repairs on the Tacoma Narrows Bridge.

15 hours ago

Stolen SUV suspect pointed gun at officer before jumping into Lake Washington, Seattle police say...

Regan Gallo-Fenz

Stolen SUV suspect reportedly pointed gun at officer before jumping into Lake Washington

A man was arrested after allegedly stealing an SUV, ramming a police vehicle, pointing a gun at an officer, and treading water in Lake Washington.

15 hours ago

End of an Era: Former Fox Island Christmas Tree Farm Set for Redevelopment...

Regan Gallo-Fenz

End of an era: Former Fox Island Christmas tree farm set for redevelopment

A former Christmas tree farm in Pierce County will soon become eight custom homes, marking a final goodbye to a beloved family business.

15 hours ago

helicopters...

KIRO 7 News Staff

2 helicopters collide mid-air in Oregon; no survivors

Three people have died following a mid-air collision between two helicopters in Oregon on Thursday afternoon.

15 hours ago

Healthcare company pays Washington more than $1M for overbilling