Connecticut will receive $114,280 from a $4 million multistate settlement with the operator of the Center for Vein Restoration clinic network over allegations it billed government health programs for medically unnecessary vein treatments. On Friday, Attorney General William Tong announced the settlement with CVR Management LLC, based in Greenbelt, Maryland, which operates the network. The […]
Connecticut will receive $114,280 from a $4 million multistate settlement with the operator of the Center for Vein Restoration clinic network over allegations it billed government health programs for medically unnecessary vein treatments.
On Friday, Attorney General William Tong announced the settlement with CVR Management LLC, based in Greenbelt, Maryland, which operates the network.
The agreement resolves allegations that, from 2010 through 2016, CVR submitted claims to Medicaid, Medicare and TRICARE for vein treatments that were performed for cosmetic reasons.
Government health programs cover those procedures only when accompanied by certain medical conditions and after patients have tried specified alternative treatments.
“Medicaid does not cover the treatment of varicose veins for cosmetic reasons alone,” Tong said. “CVR knew this, but billed state Medicaid programs for medically unnecessary treatments anyway.”
A National Association of Medicaid Fraud Control Units team led settlement negotiations on behalf of Connecticut, Indiana, Maryland, Michigan, New Jersey, New York, Virginia and the District of Columbia.
Of the total $4 million award, $604,365 will be divided among the Medicaid programs of the participating states.
The case originated from a whistleblower lawsuit filed in 2015 in U.S. District Court in Maryland under the federal False Claims Act and various state false claims statutes.
