Medical device maker Orthofix will pay $34.2 million to settle a whistleblower case claiming that it defrauded Medicare. The case arises from alleged fraudulent representations made by the company to Medicare regarding a bone stimulator device, improper waiving of co-payments and kickbacks to doctors and their staff. Orthofix will also pay a criminal fine of $7.8 million. The whistleblower, Jeffrey Bierman, will receive $9.2 million for his role in bringing the fraudulent practices to light under the federal False Claims Act.
Source: Columbia Missourian
Medicare fraud costs taxpayers $60-90 billion per year. Whistleblowers can receive 15-25% of the amount recovered from a company that has defrauded Medicare or some other federal program.