A Dodge City medical equipment supplier has agreed to pay $1 million to settle allegations it submitted false claims to Medicare.
Pos-T-Vac Inc., a Dodge City company that manufactures male vacuum erection supplies – also known as penis pumps – agreed to the settlement that it violated the False Claims Act by improperly charging Medicare for durable medical supplies.
In a news release issued Monday from U.S. Attorney Tom Beall, the government alleged that from Jan. 1, 2009, through July 27, 2012, the company submitted claims for male vacuum erection supplies that were not medically necessary, lacked documentation of medical necessity or were not properly ordered by a physician.
Medicare no longer covers such supplies.
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During the investigation, Medicare suspended payments to Pos-T-Vac. Under the terms of the settlement, the government will now retain those funds, and Pos-T-Vac will make additional payments to the United States.