U.S. telehealth firm pays $386K for Medicare overbilling
KENTUCKY, UNITED STATES — Connecticut-based telehealth provider Meditelecare LLC, operating under its parent company CompreCare Health LLC, has agreed to pay $358,514 to settle allegations of overbilling Medicare.
The settlement resolves claims that the company improperly billed for telehealth psychotherapy sessions that failed to meet minimum time requirements between January 2017 and November 2022.
Federal investigators alleged that Meditelecare relied on false time records to support its claims for Medicare reimbursement. These allegations stemmed from a whistleblower lawsuit filed in federal court in Bowling Green, Kentucky, under the False Claims Act.
The case accused the company of systematically overcharging Medicare for timed psychotherapy services.
Whistleblower lawsuit triggers federal investigation
The whistleblower suit prompted a multi-agency investigation involving the Defense Criminal Investigative Service and the Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorneys A. Matthew Weyand and William Campbell led the prosecution, with support from federal investigators and auditors.
“Those who bill Medicare for timed services must do so accurately as we take these matters very seriously and will vigorously pursue claims that Medicare is being overcharged,” said U.S. Attorney Michael Bennett of the Western District of Kentucky in a press release.
Nationwide impact on telehealth providers
Meditelecare operates in at least 17 states, including Kentucky, making this case significant for telehealth providers nationwide. While the settlement does not constitute an admission of liability by the company, it highlights the federal government’s focus on ensuring compliance with Medicare billing standards.
This case underscores the importance of accuracy in billing practices for healthcare providers, particularly those offering telehealth services. The government’s action serves as a warning to other providers about the consequences of non-compliance with Medicare regulations.
The settlement reflects broader efforts by federal agencies to combat fraudulent billing practices across the healthcare industry, ensuring taxpayer dollars are spent appropriately on legitimate services.
