Former Clarence resident accused of costly federal health care fraud - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
August 6, 2021 Newswires
Share
Share
Post
Email

Former Clarence resident accused of costly federal health care fraud

Buffalo News (NY)

Aug. 6—A former Clarence resident led a multimillion-dollar conspiracy that fraudulently convinced health insurance companies to cover the cost of medically unnecessary but wildly expensive prescriptions, according to the U.S. Attorney's Office in Buffalo.

Michael W. Luehrsen, 38, who now lives in Miami, was indicted by a federal grand jury on charges of conspiracy to commit health care fraud, money laundering and corruptly destroying evidence in the scheme.

Between early 2014 and the end of 2016, Luehrsen, a former pharmaceutical sales representative, and other members of the conspiracy marketed "compounded medications" such as creams and patches that are intended as non-narcotic treatments for scars, wounds and pain, according to the indictment. Luehrsen in 2014 founded a company, MedHype Typ, which traces to the Clarence address where he previously lived, to promote the medications.

Compounded medications typically are formed by adding together or adjusting drug ingredients to produce a medication that targets the needs of a specific patient. However, prosecutors said, Luehrsen and other participants in the scheme instead tailored the medications "to contain ingredients that carried high reimbursement rates from health insurers."

They targeted patients whose health insurance covered compounded medications, convinced the patients they would benefit from the medication and then worked with the patients to obtain the prescriptions, the indictment charges. When pharmacies obtained approval to fill the prescriptions, they would keep half the reimbursement and pay the other half to MedHype, the indictment states.

For example, from roughly January 2015 and December 2016, Luehrsen and his team arranged for one patient to get compounded medications that required monthly refills, at an average monthly reimbursement rate of more than $16,000 per medication, and eventually began prescribing to the patient's three children, generating a total reimbursement of roughly $2.82 million.

Also, according to the indictment, Luehrsen and his associates obtained prescriptions for compounded medication from doctors who had never examined the patients who received them.

One unnamed physician, prosecutors say, signed nearly 150 such prescriptions for 19 patients. The prescriptions were filled 519 times, prompting insurers to pay out more than $8.75 million.

Luehrsen also obtained "a large number of high-reimbursement compounded medications for himself," prosecutors say, worth $326,640.

Further, the indictment also accuses Luehrsen of money laundering in order to hide the fraudulent profits, including illegal wire transfers of hundreds of thousands of dollars at a time.

And, prosecutors say, Luehrsen destroyed emails and other records to impede an FBI investigation.

Luehrsen was arraigned on Aug. 4, before U.S. Magistrate Judge Jeremiah J. McCarthy and released on conditions. It's not clear whether any other participants in the purported conspiracy also have been charged in the matter.

If convicted, prosecutors want Luehrsen to forfeit millions in cash, along with real estate in Buffalo and Miami, investment holdings and his positions in various businesses.

___

(c)2021 The Buffalo News (Buffalo, N.Y.)

Visit The Buffalo News (Buffalo, N.Y.) at www.buffalonews.com

Distributed by Tribune Content Agency, LLC.

Older

Drought deepens in North Dakota; little relief in sight in August

Newer

Chairwoman Johnson Issues Opening Statement in Hearing on Wildland Fire Research

Advisor News

  • Navigating client communication in a digital age
  • Can your advisory firm survive without you?
  • I started using AI, but what now?
  • How to support an entrepreneur client with multiple businesses
  • Could a narrower focus help grow your practice?
More Advisor News

Annuity News

  • Best’s Market Segment Report: US Property/Casualty Farm Bureau Insurers Posted First Underwriting Gain Since 2021; Life/Annuity Counterparts’ Results Remain Steady
  • Legacy Marketing Group® and Malibu Life Launch Two New Fixed Indexed Annuities for Performance-Driven Income Planning
  • Changing client priorities are reshaping annuity conversations
  • Solen Software Group Acquires Cooperative Technologies, Provider of 1035 Exchange and Annuity Replacement Software
  • MassMutual Expands Lending Options With New Secured Credit Line
More Annuity News

Health/Employee Benefits News

  • MEDICARE FOR ALL, EXPLAINED: WHAT TAXPAYER-FINANCED HEALTH INSURANCE MEANS FOR YOU
  • NJ DEPARTMENT OF BANKING AND INSURANCE RECOUPS MORE THAN $10.5 MILLION FOR AUTO INSURANCE CONSUMERS OVERCHARGED BY GEICO
  • Covly Launches to Deliver Clear, Personalized Health Coverage Guidance
  • Oklahoma healthcare agency boasts low payment error rate
  • Charles Sauer: Medicare’s bad incentives are costing taxpayers billions
More Health/Employee Benefits News

Life Insurance News

  • Americans Worry They Can’t Afford Health Care in Retirement, Allianz Life Study Finds
  • Solen Software Group Acquires Cooperative Technologies, Provider of 1035 Exchange and Annuity Replacement Software
  • Virginia orders Atlantic Coast Life to halt new business Nov. 1
  • AM Best Affirms Credit Ratings of China Taiping Insurance (Singapore) Pte. Ltd.
  • AM Best Upgrades Credit Ratings of Fidelity Life Association, A Legal Reserve Life Insurance Company; Affirms Credit Ratings of Industrial Alliance Insurance and Financial Services Inc. and Its Life/Health Subsidiaries
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.