Kansas penis pump maker to pay $1M to settle fraud claims

KANSAS CITY, Kan. (AP) — A Kansas medical equipment supplier has agreed to pay $1 million to settle allegations that it submitted false claims to Medicare for vacuum erection devices that are known informally as penis pumps.

The U.S. attorney’s office announced the settlement with Pos-T-Vac Inc. on Monday. Allegations against the Dodge City company include that it submitted claims for vacuum erection supplies that weren’t medically necessary, lacked documentation of medical necessity and weren’t properly ordered by a physician. The issues are alleged to have occurred from 2009 through 2012.

Medicare has since stopped covering such devices.

During the investigation, Medicare suspended payments to Pos-T-Vac. Under the terms of the settlement, the government will retain those funds, and Pos-T-Vac will make additional payments to the government.

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