False Claims Act Attorney News: Medicare Advantage Org. Settles for $32.5 Million

On Tuesday, May 30th, 2017, the Department of Justice announced that Freedom Health Inc., its related corporate entities, and its former COO will pay a total of $32.5 million to settle allegations of illegal schemes designed to extract additional money from the government through their Medicare Advantage programs. The alleged schemes, both violations of the False Claims Act, included inflating CMS reimbursements by submitting unsupported diagnosis codes, and attempting to expand Freedom Health into new counties and states by misleading CMS of the scope of the Freedom Health networks. The former COO, Siddhartha Pagidipati, will pay $750,000 to resolve allegations of his role in the latter scheme; the whistleblower share for the relator, a former Freedom Health employee, remains to be determined.


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