Liberty Medical Supply sued for overbilling, duplicate payments

Liberty Medical Supply, a company providing mail-order diabetes products, is accused of overbilling Medicare and Medicaid in the amount of $69 million.

According to the TCPalm, former employees Lucas Matheny and Deborah Loveland have filed suit against the company, which is owned by Medco Health Solutions and Polymedica Corporation. Matheny and Loveland claim that Liberty hid $69 million in government overpayments by tampering with data. Payments lacking correct documentation totaled $62 million and duplicate payments amounted to $7 million.

The news source also states that a corporate integrity agreement made in 2004 between the company and the U.S. Department of Justice required Liberty to repay any overbillings or erroneous payments within 30 days of finding them. Matheny claims that when he went to Polymedica's compliance officers to report the activities, they told him the company was not able to repay the money to the government, according to the suit.

The Florida Bar Health Law Section reports that under the integrity agreement, Liberty was required to submit several patient accounts each year to be audited. If there was a mistake rate above 5 percent, an audit of all patient records would be conducted. The suit alleges the company tampered with their audit submissions in order to hide the overpayments.
Additionally, Metheny and Loveland allege that Liberty officials hid the overbillings by transferring the funds to fake and unused patient accounts, reports the website.

Loveland was responsible for keeping track of uncashed checks written by the company. If after five years they were not cashed, Liberty was required by law to give the money to the state of Florida, says TCPalm. Loveland said that her employer told her that Liberty did not give the unused money to Florida and accuses the company of keeping more than $1 million in outstanding checks in a company account.

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