Rapid Health will pay $8.2M to settle allegations that the company mismanaged billing for Medicare Covid test kits.
At the time of the pandemic environment, Rapid Health was doing business as a pharmacy based in Los Angeles. The company was under the umbrella of Covid Test DMV LLC and is at the center of allegations that the location violated the False Claims Act (FCA).
A Justice Department report stated that the company knowingly submitted or caused the submission of false claims to Medicare for over-the-counter (OTC) COVID-19 tests that were not provided to Medicare beneficiaries.
Rapid Health pays $8.2M
It was discovered that from April 2022 to May 2023, the company distributed OTC COVID-19 tests in connection with the Centers for Medicare & Medicaid Services (CMS) OTC COVID-19 Test Demonstration Project (Demonstration Project).
“The Demonstration Project was designed to increase the availability of OTC Covid-19 tests to Medicare beneficiaries in an unprecedented time of need,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Providers that knowingly billed for tests that were never given to patients failed to support the goals of the project and defrauded the American taxpayers.”
During this project, particular beneficiaries could claim medical coverage via Medicare Part B, including testing kits for Covid-19. Coming in at $12 per test, a beneficiary could claim up to eight tests from participating providers.
The announcement made by the Justice Department stated “that Rapid Health knowingly submitted or caused the submission of claims to Medicare for OTC Covid-19 tests that Rapid Health never provided to Medicare beneficiaries.”
The financial penalty was applied via a rigorous joint investigation and resolution by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the Department of Health and Human Services Office of Inspector General (HHS-OIG)
“This outcome serves as a reminder of our unwavering commitment to combat health care fraud and investigate those who allegedly attempt to exploit and defraud Medicare and other federally funded health care programs,” said Special Agent in Charge Maureen Dixon of the HHS-OIG.
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