Updated OIG Fraud Alert on Telemarketing by DME Suppliers
On January 13, 2010, the OIG released an update to its March 2003 Special Fraud Alert on Telemarketing by Durable Medical Equipment Suppliers. The Special Fraud Alert focuses on section 1834(a)(17) of the Social Security Act, which prohibits suppliers of DME, except under limited circumstances, from making unsolicited telephone calls to Medicare beneficiaries regarding the furnishing of a covered item. It also highlights the OIG's concerns about possible telemarketing practices by DME suppliers through the use of independent marketing firms. In the updated version of the Alert, the OIG adds that it "has also been made aware of instances when DME suppliers, notwithstanding the clear statutory prohibition, contact Medicare beneficiaries by telephone based solely on treating physicians’ preliminary written or verbal orders prescribing DME for the beneficiaries." According to the OIG, the "physician’s preliminary written or verbal order is not a substitute for the requisite written consent of a Medicare beneficiary."
