Suburban Woman Denies $1.8M Fraud Allegations in Medical Equipment Billing Case - Insurance Claims News Article

Suburban Woman Denies $1.8M Fraud Allegations in Medical Equipment Billing Case

Wednesday, July 24th, 2024 Fraud Insurance Industry Life & Health Litigation

A 74-year-old office manager from Downers Grove, Illinois has pleaded not guilty to federal charges of fraudulently billing over $1.8 million to insurance companies. The charges allege that the office manager, along with the owner of A Woman’s Place, a medical equipment boutique, submitted false invoices for products like breast prostheses, compression garments, and wigs, which were either not provided or not medically necessary. The defendant appeared before U.S. Magistrate Judge David Weisman and was released on her own recognizance with orders to avoid contact with other employees of the boutique, including the owner, identified as a co-schemer but not charged.

From May 2015 to October 2020, the office manager and the co-schemer allegedly overbilled insurers such as Blue Cross Blue Shield by more than $1.8 million by submitting invoices for non-existent services and billing for more expensive products than provided to secure higher reimbursement rates. The office manager faces seven counts of health care fraud, each carrying a maximum sentence of 10 years in prison and mandatory restitution.


External References & Further Reading
https://www.chicagotribune.com/2024/07/23/suburban-woman-pleads-not-guilty-in-1-8-million-fraud-scheme-involving-medical-equipment-for-cancer-survivors/
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