Lincare settles Medicaid investigation 

OLYMPIA, Wash. - The Washington state Attorney General’s Office has announced that Lincare has agreed to pay $1.15 million for allegedly overbilling Medicaid for rental oxygen equipment. 

The state, based on an investigation by its Medicaid Fraud Control Division, alleges that Clearwater, Fla.-based Lincare, which has a billing office in Spokane Valley to manage its operations in the Pacific Northwest, knowingly billed rental fees beyond the three years allowed in more than 15 instances between January 2017 and March 2023. It alleges the company overbilled Medicaid for 565 patients and more than $500,000. 

In August 2023, the U.S. Attorney’s Office for the Eastern District of Washington announced Lincare agreed to pay $29 million and perform extensive corrective actions to resolve allegations that it overbilled Medicare and Medicare Advantage plans for oxygen equipment. 

In a statement to HME News, a Lincare spokesperson said: 

“On Jan. 8, 2025, Lincare resolved a dispute with the Washington Attorney General regarding claims for oxygen equipment rental submitted to the Washington Medicaid Program. This dispute concerned the same issues addressed in Lincare’s August 2023 Medicare settlement with the U.S. Attorney’s Office for the Eastern District of Washington addressing the sufficiency of Lincare’s internal billing controls for such rentals. In resolving this matter, Lincare did not admit liability. Lincare remains fully committed to compliance with all applicable laws and regulations.” 

The Washington state Attorney General’s Office says the Medicaid Fraud Control Division’s investigation began shortly after the August 2023 resolution and corrective actions were announced. 

As part of its agreement with the Attorney General’s Office, Lincare must comply with Washington’s oxygen leasing laws and also ensure it has internal controls to prevent further violations.