Posted February 8th, 2021.
By Binghui Huang
Roche, an Indianapolis-based medical supply company, and Humana, a Louisville-based health insurer, paid $12.5 million to settle a lawsuit after a whistleblower accused them of defrauding a government insurance program, according to a news release.
A former employee of Roche Diagnostics accused the two companies of submitting false claims to a Medicare program that’s funded by the government and run by private companies.
The whistleblower accused Humana, which administers the Medicare program, and Roche of arranging a deal where debt was forgiven in exchange for Humana favoring Roche’s diabetes testing supplies.
“The recovery obtained in this case is a testament to the power of whistleblowers in America,” said Michael D. Palmer, a partner in Sanford Heisler Sharp’s New York office, in the news release.
The whistleblower received 29% of the settlement, totaling $3.6 million. The rest of the payment went to the government.