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In Brief: FTC health fraud actions

This article was originally published in The Gray Sheet

Executive Summary

FTC health fraud actions: Federal Trade Commission files health insurance fraud charges against three medical equipment suppliers -- Independence Medical of Mount Pleasant, South Carolina; Freedom Medical of Hilliard, Ohio; and Motion Medical of Blacklick, Ohio. The complaints allege that the companies sold medical equipment to consumers nationwide via telemarketing, then made insurance claims for other, more expensive equipment. In some instances, FTC charges, the defendants filed insurance claims listing items and accessories that were never discussed with, or ordered by, consumers. Pending hearings on the charges, federal district courts have frozen the defendants' assets and appointed receivers to oversee corporate operations...

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