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GEICO alleges $1.9M phantom-billing scheme tied to DME firms
GEICO says it has already paid more than $666,000 on the disputed No-Fault claims, with an additional $952,000 still pending.
GEICO has filed a 70-page complaint alleging that two durable medical equipment companies used a shared phone number and related billing patterns to submit fraudulent No-Fault insurance claims. The insurer says Austin Supply Inc. and Mr. DME Inc. were shell companies controlled by an unidentified “secret owner,” who allegedly used the firms in rotation.
According to the filing, GEICO says the operation produced more than $1.9 million in alleged phantom equipment bills, with medical equipment that was either never needed, never properly prescribed, or never worth close to the amounts billed. GEICO also alleges it has already paid more than $666,000 on those claims, and that $952,000 in charges remains pending.
The complaint also alleges both companies billed exclusively for two equipment types, cold compression therapy systems priced at $3,100 each and laser therapy devices priced at $3,750 each. GEICO says the firms used the same catch-all billing code designed for items so rarely prescribed they carry no standard price.