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February 9, 2012
Over the past decade, Medicare spending for penis pumps has shot up over 500 percent. The Center for Medicare and Medicaid Services reports that annual spending on penis pumps has increased from $7.2 million in 2000 to over $36 million in 2011. While this is still a very small portion of the $7.5 billion Medicare spends annually on durable medical equipment (DME) and outpatient supplies, the rapid increase in spending is suspicious.
Federal fraud investigators suspect that Medicare fraud is the explanation for this precipitous increase, according to the East Valley Tribune. For the past four years, federal investigators have looked into over $8 million in payments for “male vacuum erection systems.” Their investigation has uncovered a number of extremely suspicious cases:
Medicare reimburses providers for the legitimate cost of penis pumps as durable medical equipment (DMEs) when they have been prescribed as “medically necessary” to treat erectile dysfunction.
Waters & Kraus is a national firm with highly skilled lawyers practicing qui tam litigation in four offices, including Dallas, Los Angeles, San Francisco, and Baltimore. Our attorneys have decades of experience successfully representing whistleblowers in a variety of fraud cases. Contact us or call our attorneys at 800.226.9880 to learn more about our practice and how we can assist.
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