Kansas man pays $15.2 million in National Insurance fraud

PHILADELPHIA (WIBW) – A Kansas man has been ordered to pay more than $15.2 million in a National Insurance fraud scheme.

of US Attorney’s Office for the Eastern District of Pennsylvania He was ordered to pay a total of $15,270,066 for the violation. False Claims Prevention Act.

The Secretariat said this is the latest action in a national investigation into improper billing schemes related to the P-Stim electroacupuncture device. P-Stim is also branded as ANSiStim, Stivax, NeuroStim, and NSS-2 Bridge. Federal medical programs do not issue refunds for these devices.

As the complaint alleges, Warren, a Wichita chiropractor, and his firm have obtained approval from the Food and Drug Administration to certify the auricle electricity as reimbursable by Medicare and other federal insurers. You falsely advertised an acupuncture device. He advertised himself as a medical reimbursement consultant and his firm as a compliance consulting firm.

As a result, the Secretariat indicated that various marketers and distributors of P-Stim devices paid Warren a monthly fee to provide coding recommendations to their customers. The provider also paid him directly for his guidance in coding.

Since 2014, according to court records, Warren advertised the device as refundable and gave instructions on what codes to claim. These codes, which generated massive reimbursements, were actually intended for legal neurostimulators surgically implanted to manage chronic pain. P-Stim, on the other hand, can be applied in minutes in an office setting without anesthesia or minimal training.

During this time, Warren and his company actually knew that the P-Stim device would not be reimbursed by the federal medical program, but nevertheless continued to promote non-surgical devices.

The Office noted that it filed a complaint against Warren on October 14, 2021 and has been suing since then. This includes dismissing Warren’s motion to move the lawsuit to the Kansas District. After Warren’s defense declined and the defendants failed to respond, the US sought default judgment.

Warren and Titan are now fined a total of $15.2 million for allegedly falsely filing approximately 1,200 federal health care claims in violation of the FCA, according to the ruling.

“This office has sued individuals and entities nationwide who are responsible for the P-Stim fraud,” said Romero. “By Warren’s decision, our office held accountable for the tainted claims paid by the federal health care program. By spreading bad coding advice, you could be held liable for causing others to submit false claims.” She went on to tell other providers and medical device marketers: warned.

Click for more information on the judgment here.

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