Roche Diagnostics And Humana Settle $12.5M Medicare Fraud Lawsuit

Roche, an Indianapolis-based medical supply company, and Humana, a Louisville-based health insurer, paid $12.5 million to settle a lawsuit after a whistleblower accused them of defrauding a government insurance program, according to a news release.

A former employee of Roche Diagnostics accused the two companies of submitting false claims to a Medicare program that's funded by the government and run by private companies.

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The whistleblower accused Humana, which administers the Medicare program, and Roche of arranging a deal where debt was forgiven in exchange for Humana favoring Roche's diabetes testing supplies.

“The recovery obtained in this case is a testament to the power of whistleblowers in America,” said Michael D. Palmer, a partner in Sanford Heisler Sharp’s New York office, in the news release.

The whistleblower received 29% of the settlement, totaling $3.6 million. The rest of the payment went to the government.