The U.S. Justice Dept. this week said that DJO Global agreed to pay more than $7.6 million to settle allegations that a former subsidiary submitted false claims to Tricare, the military’s health insurance arm.
DJO, which wound down its Empi subsidiary in 2015, allegedly submitted claims to Tricare for “excessive, unnecessary” transcutaneous electrical nerve stimulation electrodes, the Justice Dept. said. The company used an “assumptive selling” technique to convince the insurer to buy “unjustifiably large quantities” of TENS electrodes from 2010 through 2015, “with a particularly steep increase in the number of beneficiaries receiving unnecessary quantities in 2014-2015.”
DJO did not admit any liability in the settlement, the DoJ said.
“We commend the Defense Health Agency and the Dept. of Defense Office of Inspector General for analyzing this conduct and working with the department to guard the integrity of Tricare, a vital federal health care program that provides medical care and services to those in the military and their families,” acting assistant attorney general Chad Readler said in prepared remarks.
“Service members, veterans, and their families deserve the best available medical care,” added U.S. attorney Gregory Brooker. “This $7.6 million settlement underscores our commitment to protecting the integrity of federal health care programs and it sends a strong message of accountability to those who would seek to take advantage of those programs.”