Attorney General Bob Ferguson announced that Lincare Inc. has agreed to pay $1.15 million to Washington state following an investigation by the Medicaid Fraud Control Division. The payment will reimburse the state's Medicaid program for overbilling related to leased oxygen equipment.
Lincare, based in Florida, provides respiratory devices nationwide, including in Washington. The company operates a billing office in Spokane Valley for its Pacific Northwest operations. Its services include renting and servicing oxygen equipment for patients with respiratory conditions.
According to state law, Medicaid covers rental fees on oxygen equipment for three years, with additional charges allowed only for maintenance and supplies for two more years. However, from January 2017 to March 2023, Lincare allegedly billed rental fees beyond the permitted three-year period over 15,000 times. In some cases, they charged rental fees for up to six years.
The Attorney General’s Office estimates that Lincare overbilled Medicaid by more than half a million dollars affecting 565 patients in Washington.
In August 2023, Lincare reached a $29 million settlement with the U.S. Attorney for the Eastern District of Washington. This settlement required Lincare to implement billing reforms and engage independent experts to review its claims practices.
As part of its agreement with the Attorney General's Office, Lincare must comply with Washington's oxygen leasing laws and establish internal controls to prevent future violations.
Assistant Attorneys General Naomi Smith and Matthew Kuehn managed the case alongside data scientist Tobias Maas and paralegal Shawntá Williams.
The Medicaid Fraud Control Division receives most of its funding from the U.S. Department of Health and Human Services through a grant totaling $10,873,316 for fiscal year 2025. The rest is funded by state Medicaid fraud recoveries amounting to $3,624,436.
This division also investigates abuse or neglect in residential facilities connected with Medicaid services. It encourages reporting suspected fraud at 360-586-8888 or MFCUreferrals@atg.wa.gov.
Washington's Attorney General’s Office represents all state agencies while enforcing various protection laws and prosecuting elder abuse and Medicaid fraud cases across nearly all counties in Washington.