Vanishing Texas companies linked to millions in fraudulent Medicare billings

NORTH TEXAS – Medicare fraud is suspected of costing Americans billions of dollars annually. Instead of funding healthcare, this money has become an income stream for suspected criminals. After the CBS News Texas I-Team exposed a Grand Prairie company allegedly connected to over $200 million in fraudulent billings, viewers flooded the I-Team with calls and emails. Many shared their own experiences as victims of Medicare fraud.

Dwight Sandell of Dallas, whose Medicare account was fraudulently billed, watched the report and exclaimed, “That’s my story right there.” Sandell’s Medicare account was billed for 10 straight months for urinary catheters. He never ordered or received any catheters. “It was all fraudulent,” he said.

Debbie Gollihugh of Rowlett had to change her Medicare account number due to fraudulent billings. She expressed her frustration, saying, “How dare they come and scam off of us? This is a big, big issue, costing us taxpayers a lot of hard-earned money.”

Paula and Winfield Bridge, residing outside Philadelphia, discovered their Medicare accounts were billed six times by multiple Texas companies for COVID test kits they never ordered. When the I-Team investigated these companies, Lone Star Medlab Laboratories LLC had vanished from its Plano office. The company’s listed phone number was also disconnected.

Peak Health Diagnostics LLC, another company with numerous complaints of fraudulent Medicare billing, moved out of its Richardson address a year and a half ago, according to the building’s new tenant. The same situation applied to Trident Diagnostics LLC, which shared the same Richardson address and falsely billed the Bridges for unordered supplies.

The I-Team then visited yet another North Texas medical supply company – Aids for Recovery in Garland. The Better Business Bureau received dozens of complaints about Aids for Recovery for allegedly fraudulently billing Medicare accounts for glucose monitoring equipment. At the Garland address, a lockout notice was posted on the front door, and the otherwise empty office contained a pile of unopened letters from Medicare.

The Centers for Medicare and Medicaid Services told the I-Team that ongoing investigations were underway, even though they couldn’t disclose details. Medicare has identified 11 companies suspected of nearly $3 billion in fraudulent catheter billing and successfully prevented most of that money from reaching them.

Additionally, Medicare temporarily halted payments for COVID test kits last summer after an influx in fraudulent claims. Since then, Medicare said it has implemented additional safeguards to prevent inappropriate payments.

Last month, the U.S. Justice Department charged 193 people in a nationwide crackdown on healthcare fraud schemes, totaling more than $2.7 billion in false claims. However, none of the Texas medical supply companies falsely billing viewers’ accounts were among those charged. For Medicare recipients, there’s still work to be done.

Medicare fraud can be reported to the federal government by calling 1-800-MEDICARE (1-800-633-4227) or online.

The CBS News Texas I-Team also wants to know if you believe you’ve been a victim of Medicare fraud. You can contact the I-Team at iteam@ktvt.com.