Other LanguagesOxygen tank provider overbilled Medicaid more than 15,000 times
OLYMPIA — Attorney General Bob Ferguson announced today that due to his Medicaid Fraud Control Division’s investigation, Lincare Inc. paid Washington state $1.15 million. This will reimburse the state’s Medicaid program for Lincare’s fraudulent overbilling of leased oxygen equipment.
Lincare, headquartered in Florida, provides in-home respiratory devices to patients throughout the U.S., including Washington state. It has a billing office in Spokane Valley to manage its operations in the Pacific Northwest. Lincare’s services include renting and servicing oxygen equipment to patients with respiratory conditions who rely on this equipment to breathe.
Medicaid provides oxygen equipment on a five-year contract. Under Washington state law, Medicaid pays rental fees on oxygen equipment for three years. For an additional two years, providers like Lincare can continue to bill for maintenance and supplies, but may no longer charge rental fees. After that, the device is eligible for replacement.
Ferguson asserts that between January 2017 and March 2023, Lincare knowingly billed rental fees beyond the three years allowed by law more than 15,000 times. In some instances, Lincare continued to bill Medicaid rental fees for six years — twice the legal limit. The Attorney General’s Office Medicaid Fraud Control Division estimates Lincare overbilled Medicaid for 565 Washington patients by more than half a million dollars.
In August 2023, Lincare entered into a $29 million resolution with the U.S. Attorney for the Eastern District of Washington. That resolution required Lincare to make significant billing reforms and practices and retain, at its expense, independent experts to review its claims and billing practices to ensure they are lawful. The Medicaid Fraud Control Division’s investigation began shortly after the U.S. Attorney announced its resolution.
As part of its legally binding agreement with the Attorney General’s Office, Lincare will comply with Washington’s oxygen leasing laws and will also ensure it has internal controls to prevent further violations.
Assistant Attorneys General Naomi Smith and Matthew Kuehn, data scientist Tobias Maas and paralegal Shawntá Williams handled the case for the Attorney General’s Office.
Attorney General’s Medicaid Fraud Control Division
The Washington Medicaid Fraud Control Division receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $10,873,316 for federal fiscal year 2025. The remaining 25 percent, totaling $3,624,436, is funded by Washington state Medicaid fraud recoveries.
The Medicaid Fraud Control Division also investigates abuse and neglect of persons residing in residential facilities and in connection with the provision of Medicaid services.
Medicaid provides health insurance for qualifying low-income individuals, including children, the elderly and persons with a disability.
Report suspected Medicaid fraud at 360-586-8888 or MFCUreferrals@atg.wa.gov.
You can also report provider fraud via the AGO website at www.atg.wa.gov/medicaid-fraud.
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Washington’s Attorney General serves the people and the state of Washington. As the state’s largest law firm, the Attorney General’s Office provides legal representation to every state agency, board, and commission in Washington. Additionally, the Office serves the people directly by enforcing consumer protection, civil rights, and environmental protection laws. The Office also prosecutes elder abuse, Medicaid fraud, and handles sexually violent predator cases in 38 of Washington’s 39 counties. Visit www.atg.wa.gov to learn more.
Media Contact:
Brionna Aho, Communications Director, (360) 753-2727; Brionna.aho@atg.wa.gov
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