Liberty Medical gets OK on settlement of $160 million Medicare claim

By Kali Hays

New York, Nov. 13 – Liberty Medical Supply, Inc. received approval of a settlement agreement with the Centers for Medicare & Medicaid Services (CMS) resolving a $160 million overpayment claim by CMS, according to a Nov. 13 order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, CMS alleged that it made excess payments to Liberty in 2008, 2009 and 2010 totaling about $160 million related to enrollment agreements between the parties and an audit of patient claims conducted in 2010.

Under the settlement, the claim has been reduced to $31.8 million and CMS agreed to drop all litigation against the company.

The reduced claim will be considered paid in full with $14.8 million of payments already made by Liberty, a $1 million cash payment upon a plan effective date and $16 million paid over five years, according to the agreement.

Liberty’s asset buyer will also be able to assume its current enrollment agreements with CMS, according to the motion.

The company is seeking approval to sell its assets to Liberty Medical, LLC for $32.5 million.

Liberty Medical, a Port St. Lucie, Fla.-based health-care products home delivery provider, filed for bankruptcy on Feb. 15, 2013. The Chapter 11 case number is 13-10262.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.