Qui Tam

Health care benefits company settles FCA suit

By Phillips & Cohen LLP

Sierra Military Health Services, LLC has agreed to pay $2.2 million to settle allegations that it caused the submission of false claims to TRICARE. TRICARE is the health care program for active duty service members and their families, retired service members and their families, National Guard/Reserve members and their families, survivors and others entitled to DoD medical care.

The Maryland Office of the US Attorney said that Sierra received an administrative fee for administering the TRICARE contract, including payments to subcontractors to assist with the administration of the contract. Sierra, however, did not pay at least one of its subcontractors from its administrative fee. Instead, Sierra and the subcontractor entered into an agreement under which the subcontractor billed TRICARE for its costs by adding its fees into health benefits claims.

Full post as published by False Claims Act - Qui Tam on February 05, 2010 (boomark / email).