FDAnews Device Daily Bulletin
Medical Devices / Regulatory Affairs

DOJ Files Charges in $2.1 Billion Telemedicine Health Care Fraud Plot

Oct. 1, 2019

The U.S. Department of Justice has charged 35 defendants involved with telemedicine companies and cancer genetic testing labs for allegedly taking part in a $2.1 billion fraudulent health care scheme.

The defendants made up Medicare billings amounting to more than $2.1 billion for the medically unnecessary genetic tests, the DOJ said, alleging that the scheme traded illegal kickbacks and bribes for Medicare beneficiary referrals.

“Unfortunately, audacious schemes such as those alleged in the indictments are pervasive and exploit the promise of new medical technologies such as genetic testing and telemedicine for financial gain, not patient care,” said Gary L. Cantrell, HHS deputy inspector general for investigations.

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