Humana Advances Fraud Claims Against Medical Equipment Suppliers

Humana Inc. can proceed with a lawsuit alleging two Texas medical equipment suppliers owe it about $2.8 million after filing fraudulent claims on behalf of Medicare patients, a federal court said.

The Medicare Advantage insurer adequately pleaded the who, what, when, where, and how of fraud and negligent misrepresentation by Deliver My Meds Corp. and CGM Monitors Corp., including “great detail” about their payment claims, the US District Court for the Northern District of Texas said Wednesday.

Humana had standing to sue for unjust enrichment and violations of the Texas Theft Liability Act, Judge Jane J. Boyle also said. But ...