Office of Inspector General rejects manufacturers proposal for free hearing aids

The Office of the Inspector General for the Department of Health and Human services has rejected a manufacturer’s proposal to give out free hearing aids to certain patients if they receive one of its cochlear implant devices. The OIG said it was concerned that the free items to Medicare and Medicaid patients might result in unfair competition. The hearing aids in question have a value of $1,180 to $2,240.

The Proposed Arrangement could violate the federal Anti-Kickback Statute (AKS) as the free hearing aids might cause patients to arrange for the ordering and purchasing of the Device, reimbursable by Medicare and Medicaid. There is a recently created patient engagement and support safe harborthat protects items or services given to patients in order to improve quality, health outcomes, and efficiency. The OIG provides a non-exclusive list of examples of the types of items that can be protected to include:

  • air filters and purifiers,
  • temporary housing,
  • broadband access,
  • grocery or meal delivery services,
  • vehicle modifications, and
  • exercise programs
  • JEFFREY NEWMAN IS A WHISTLEBLOWER LAWYER WHOSE FIRM HANDLES HEALTHCARE FRAUD CASES UNDER THE FALSE CLAIMS ACT (FCA). HE CAN BE REACHED AT JEFF@JEFFNEWMANLAW.COM OR 617-823-3217