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Medical Supply and Billing Company Manager Admits Fraud



A former chief executive of a Arkansas medical supply and billing company pleaded guilty on Wednesday to a $ 3.9 million conspiracy charge to defraud the federal government and private insurance companies of overcharging for unnecessary supplies of drugs. workers as compensation patients, USA Law Firm announced.

Amanda Dawn Rains pleaded guilty to aggravated conspiracy to commit e-mail fraud, fraud, health care fraud, fraud to obtain compensation from federal employees and pay denials.

Ms. Rains was hired in 2013 as the billing director for a billing company in Rogers, Arkansas, which was not identified by name in court papers. She joined a fraud system that started two years earlier and continued through 201

7 that defrauded the federal workers' compensation program and private comp. Insurance company.

Charging document states that people working for the unnamed company recruited doctors to distribute pain creams and patches to workers' compensation. patients in exchange for a share of the profits from successful invoicing by insurance companies.

After signing contracts with physicians, the company provided them with pain creams and patches and acted as a billing agent for physicians, handling paperwork and filing the alleged fraud claiming insurers and the U.S. Department of Workers & # 39; Compensation Programs. and invoices them with up to 20 times what the medicines actually cost, and then paid the doctors back on the amounts collected.

Ms. Rains was accused of running the billing system and electronically submitting the fraudulent allegations and advising doctors on how to respond to insurers who questioned fees.

Robert Dale Bernauer Sr., who ran a clinic in Lake Charles, Louisiana, pleaded guilty in July to a conspiracy charge for his role in the system.

WorkCompCentral is a sister publication of Business Insurance. More stories here .

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