DOJ’s The latest Telehealth Enforcement Motion Highlights Improved Abuse of COVID-19 Waivers | Epstein Becker & Eco-friendly

On May perhaps 26, 2021, the Office of Justice (“DOJ”) introduced a coordinated regulation enforcement…

On May perhaps 26, 2021, the Office of Justice (“DOJ”) introduced a coordinated regulation enforcement action in opposition to 14 telehealth executives, medical professionals, entrepreneurs, and health care company house owners for their alleged fraudulent COVID-19 connected Medicare claims resulting in in excess of $143 million in phony billing.[1] This coordinated hard work highlights the amplified scrutiny telehealth vendors are struggling with as swift expansion attempts because of to COVID-19 condition field standards.

Because the outset of the COVID-19 pandemic, the DOJ has prioritized determining and prosecuting COVID-19 connected fraudulent perform, particularly in regards to the Coronavirus Aid, Aid, and Financial Protection (“CARES”) Act[2] fiscal guidance packages. Nonetheless, before this latest wellbeing treatment fraud takedown, the DOJ declared rather very little enforcement action specific to federal healthcare programs. This renewed enforcement action may spark an greater effort by the DOJ to handle pandemic-related fraud as it relates to health care systems.

In addition to the DOJ criminal fees, the Center for Program Integrity (“CPI”), Facilities of Medicare and Medicaid (“CMS”) independently introduced penalties for above 50 health-related suppliers for their involvement in overall health care fraud techniques connected to the pandemic and abuse of CMS courses.[3] The CPI/CMS prices in conjunction with DOJ’s health care fraud takedown present insight into DOJ’s current enforcement patterns associated to the pandemic which incorporate:

  • Telehealth Waivers: In an exertion to extend affected person entry all through the pandemic, CMS broadened the products and services it reimbursed for telemedicine tactics when federal officials also calm privacy recommendations that limited sorts of units that certified to administer telehealth expert services. CMS also waived affected person deductibles and copayments, which normally would have been construed as kickbacks if made use of for pointless solutions. The scenarios declared by both of those the DOJ and CMS allegedly sought to exploit these expanded guidelines by publishing false claims to Medicare for telemedicine encounters that in no way truly transpired. Moreover, DOJ charged clinical professionals in these situations with allegedly accepting bribes in exchange for referrals of medically unwanted testing.[4]
  • Bundled COVID-19 Tests: In addition to filing medically avoidable Medicare statements, the DOJ billed defendants in these instances with bundling COVID-19 screening promises with Medicare claims for added, typically much more highly-priced laboratory tests, such as most cancers genetic screening, allergy screenings, and respiratory pathogen panel tests. In numerous of these scenarios, these tests were being medically needless or were not even delivered to the patients.[5]
  • Service provider Relief Funds: The current regulation enforcement action provided the 3rd legal case in the state focusing on misuse of Provider Aid Money. The CARES Act made this funding to support individuals with healthcare relevant expenses or misplaced income attributable to COVID-19. In this circumstance, the DOJ alleged that the owner of a property overall health agency misappropriated Service provider Aid Money for his very own advantage.[6]

Even though the DOJ’s May announcement centered on criminal healthcare fraud actions associated to COVID-19, we can assume that the DOJ’s Civil Division will also make telehealth enforcement a precedence. In a February tackle to the Federal Bar Association’s Qui Tam meeting, Performing Assistant Legal professional Normal Brian M. Boynton said, “I also assume a ongoing aim on telehealth schemes, especially specified the enlargement of telehealth all through the pandemic.”[7] It is very likely that the enlargement of telehealth providers and waivers will trigger the Division to see a rise in qui tam steps filed by whistleblowers, as well as Wrong Promises Act conditions as the yr progresses and the overall economy carries on to get better from the pandemic.


[1] Push Release, DOJ Announces Coordinated Legislation Enforcement Action to Fight Overall health Care Fraud Similar to COVID-19, Division of Justice (Could 26, 2021), and fitness-care-fraud-associated-covid-19.

[2] The CARES Act, Pub. L. No. 116-136 (2020).

[3] Push Release, DOJ Announces Coordinated Regulation Enforcement Action to Fight Health Treatment Fraud Relevant to COVID-19, Section of Justice (Might 26, 2021), health-care-fraud-relevant-covid-19.

[4] U.S. v. Stein et al., 1:21-CR-20321-CMA (S.D. Fla. May well 25, 2021).

[5] U.S. v. Taylor, 2:21-MJ-02003-MEF (W.D. Ark. May perhaps 21, 2021) U.S. v. Ruis et al., 9:21-CR-80080 (S.D. Fla. May possibly 24, 2021) U.S. v. Clarkin, 3:21-CR-00438 (D.N.J. May 24, 2021).

[6] U.S. v. Hannesyan, 2:21-MJ-02562 (C.D. Cal. May possibly 24, 2021).

[7] Push Launch, Performing Assistant Attorney Typical Brian M. Boynton Provides Remarks at the Federal Bar Affiliation Qui Tam Meeting, Section of Justice (February 17, 2021),