Prosecutors in settlement over medical billing in New York

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ALBANY, N.Y. (AP) >> Federal prosecutors have announced a settlement with a Massachusetts-based billing company for return of bonuses claimed for medical services in northern New York for military members and families.

According to authorities, Medical Reimbursement Systems Inc. will pay $500,000 to resolve allegations it submitted false claims to the TRICARE Program on behalf of a Watertown physicians' practice. The company claimed that it was eligible for 10 percent Medicare bonuses for areas designated as having a shortage of health professionals.

Under the settlement, the company has agreed to hire an outside consultant to conduct TRICARE billing training for its staff and appoint a new compliance officer.

U.S. Attorney Richard Hartunian says it's the 14th instance of improper TRICARE bonus claims his office has resolved since July, returning almost $3 million.


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