By: Richard L. Smith
Vault Medical Services, P.A. and Vault Medical Services of New Jersey, P.C. have agreed to pay $8 million to resolve allegations that they improperly billed the federal government for COVID-19 services meant for uninsured patients, according to a statement released by the U.S. Department of Justice.
Federal authorities alleged that between May 2020 and April 2022, Vault knowingly submitted or caused the submission of false claims to the Health Resources & Services Administration’s Uninsured Program—a fund established during the pandemic to reimburse healthcare providers for services provided to uninsured individuals.
The settlement resolves claims that Vault sought reimbursements for patients who, in fact, had active health insurance.
According to the Justice Department, Vault administered COVID-19 services across the country, including testing, vaccinations, and telehealth consultations.
However, officials claim the company failed to adequately verify patients' insurance status and submitted claims to the Uninsured Program even when insurance information was available or confirmed through verification processes.
Prosecutors further stated that Vault was aware of flaws in the data collection process, particularly regarding patient demographics and insurance details, but did not take sufficient corrective action.
“The Uninsured Program provided critical support during the height of the pandemic,” said U.S. Attorney Alina Habba. “We will not tolerate the misuse of these vital funds through fraud or neglect.”
The case was a joint effort between the U.S. Attorney’s Office for the District of New Jersey, the Justice Department’s Civil Division, and the Office of Inspector General at the Department of Health and Human Services.
No determination of liability was made as part of the settlement.