$1B Telemedicine Fraud Scheme Alleged
Written by Editor   
Tuesday, October 16, 2018 12:35 PM

Telemedicine is a growing area of medical fraud concern.  Federal prosecutors have announced that seven companies and four men are facing charges, accused of roles in a $1 billion telemedicine fraud scheme that deceived tens of thousands of patients and more than 100 doctors. 

Six Florida companies, a Houston firm and four Florida men are named in a 32-count indictment charging them with conspiracy to commit health care fraud, introducing misbranded drugs into interstate commerce and mail fraud.

According to prosecutors, this group created an “elaborate” scheme in which telemedicine firm HealthRight LLC fraudulently solicited insurance information and prescriptions from customers nationwide for pain creams and similar products.

Prosecutors added that doctors approved prescriptions without knowing that the companies and their officials massively marked up prices of the wrongly prescribed drugs. The defendants then billed private insurance, defrauding them out of about $174 million from June 2015 to April 2018, and at least $931 million in fraudulent claims  were submitted prosecutors say.

In September, telemedicine company HealthRight LLC and its CEO, pleaded guilty to charges in that scheme and another regarding fraudulent telemarketing of dietary supplements, skin creams and testosterone.

Source:  https://www.nytimes.com/aponline/2018/10/15/us/ap-us-telemedicine-charges.html