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AmMed Direct Settles Whistleblower Complaint For $18 Million

Tennessee-based AmMed Direct, LLC (“AmMed”) has agreed to settle a whistleblower action with the payment of $18 million to the United States and the state of Tennessee. The complaint was initially brought by whistleblower Bryan McNeese, a former AmMed employee, in 2009 under the qui tam provisions of the False Claims Act.

The qui tam complaint alleged that from September 2008 to January 2010, AmMed submitted false claims to Medicare and Tennessee Medicaid (“TennCare”) for diabetes testing supplies, heating pads and other medical supplies. The whistleblower also stated that AmMed induced Medicare beneficiaries to contact AmMed or its telemarketing firm by advertising free cookbooks. The complaint alleged that once AmMed confirmed the beneficiary was covered by Medicare, an AmMed representative would attempt to sell the beneficiary medical supplies that would be paid for by Medicare. Medicare guidelines generally prohibit medical companies from making unsolicited contact with Medicare beneficiaries in order to sell them products.

In addition, the whistleblower claimed that many of the Medicare beneficiaries who contacted AmMed to receive the free cookbooks returned the diabetic supplies. The complaint alleged that AmMed failed to timely refund the money to Medicare or TennCare.

According to the settlement, AmMed will pay $17.5 million to the United States and roughly $500,000 to the state of Tennessee. As his share of the settlement proceeds, the relator will receive $2.88 million.

If you have any firsthand knowledge, information, or evidence related to any federal, state, county or city government fraud, you should speak with an experienced qui tam lawyer who can help you understand your legal rights and help you obtain the compensation you deserve.

If you have a claim, contact the Florida whistleblower attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.

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