Attorney General Cameron Announces Return of More than $300,000 to Medicaid Program From Multi-State Settlement with ResMed Corp.

FRANKFORT, Ky. (Jan. 17, 2020) – Attorney General Daniel Cameron today announced that the Kentucky Office of Medicaid Fraud and Abuse Control has returned more than $300,000 to the state and federal Medicaid program as part of a joint settlement with other states and the federal government with ResMed Corp. (“ResMed”).

ResMed is a provider of health care goods and services, including manufacturing and selling positive airway pressure machines, masks, and related supplies designed to treat or diagnose sleep-related respiratory disorders such as sleep apnea. The settlement resolves allegations that ResMed caused health care providers to submit false claims to the Medicaid program for supplies used to treat sleep apnea and sleep-related respiratory disorders and for home sleep tests.  The allegations included unlawful remuneration arrangements between ResMed and providers for the sale or rental of equipment or the performance of tests. 

The government alleged that ResMed’s conduct violated the Federal False Claims Act and state equivalent laws, thereby resulting in the submission of false claims to the Medicaid program. 

The total value of the settlement is $39,500,000.  Kentucky’s recovery was $320,969.41 based on the proportion of false Medicaid claims filed in Kentucky.

A National Association of Medicaid Fraud Control Units (“NAMFCU”) team investigated the allegations in conjunction with the Department of Justice and United States Attorneys Offices in California and South Carolina.  The NAMFCU Team included representatives from the Offices of the Attorneys General for the states of California, Florida, Nevada, North Carolina, and Washington.  

States involved in the settlement include Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.