Arriva Medical (Alere) Paying $160 Million on False Claims Charges

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Arriva Medical, at one time the nation’s largest mail-order diabetic testing supplier, and its Alere parent will pay $160 million to resolve allegations they violated the False Claims Act. A Justice Department news release says Arriva ceased business operations 12/2017. It was acquired by Alere in 2011.

The settlement resolves allegations that Arriva and Alere made or caused claims to Medicare that were false because kickbacks were paid to Medicare beneficiaries, patients were ineligible to receive glucometers, or patients were deceased.

The federal government alleges that from 4/2010 until the end of 2016, Arriva, with Alere’s approval, paid kickbacks to Medicare beneficiaries by providing them “free” or “no-cost” glucometers by routinely waiving or not collecting their copayments for meters and diabetic testing supplies.

The release says the settlement also resolves allegations that Arriva and Alere caused the submission of false claims to Medicare for glucometers because the companies allegedly systematically provided to all of its new patients, and billed Medicare for, a meter without regard to the patients’ eligibility for one. And it resolves claims that Arriva submitted false claims to Medicare on behalf of deceased beneficiaries. Medicare revoked Arriva’s Medicare supplier number 11/2016 for submitting such claims, the Justice Department says.

A former Arriva call center employee brought a whistleblower claim against the company, which later was taken over by the federal government. The whistleblower, Gregory Goodman, will receive nearly $29 million from the settlement proceeds.

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