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Attorney General Stein Announces Nearly $10 Million Settlement over Improper Billing for Portable Oxygen

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(RALEIGH) Attorney General Josh Stein today announced that North Carolina will receive $43,671.23 as part of a $9.95 million settlement with Rotech Healthcare Inc., a Florida-based respiratory equipment supplier. This settlement comes in response to allegations that Rotech knowingly submitted false claims for portable oxygen contents to Medicaid and Medicare.

“When companies try to cheat the system, it drives up prices for the rest of us,” said Attorney General Josh Stein. “That’s unacceptable, and I will do everything in my power to protect North Carolina’s taxpayers from this type of abuse.”

From January 1, 2009 to March 31, 2012, Rotech automatically billed Medicaid and Medicare for portable oxygen contents regardless of whether the beneficiaries used or needed portable oxygen.

This settlement is joined by North Carolina, the federal government and 22 states.

A team appointed by the National Association of Medicaid Fraud Control Units participated in the investigation and conducted settlement negotiations with Rotech on behalf of the settling states. Team members included representatives from the Offices of the Attorneys General of California, Texas, Illinois, and Oklahoma. The North Carolina settlement agreement was reached by the Medicaid Investigations Division of the North Carolina Department of Justice and the North Carolina Division of Medical Assistance.

Laura Brewer (919) 716-6484


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