$160 Million FCA recovery against diabetic testing supply giant for engaging in a kickback scheme.

Barrett Johnston Martin & Garrison represented a call center working who alleged that his employer, Arriva Medical, was engaging in a scheme to waive patient co-pays on diabetic testing supplies to induce their business.  For many types of Medicare-covered items and services, the United States requires the beneficiary to pay some portion of the cost as a co-pay.  This is to ensure that beneficiaries have some skin in the game with their health care costs and genuinely need and want those items and services that Medicare is paying for.  In this case, our client alleged that Arriva, then the nation’s largest mail-order provider of diabetic testing supplies and a subsidiary of a publicly traded company, was deliberately waiving co-pays in order to induce them to order supplies from Arriva rather than a competitor.  The United States intervened in this litigation and Arriva ultimately settled these claims for $160 million. 

Read more at The Department of Justice press release.