Attorney General John O’Connor announced that a former Oklahoma-based company, Tri State Medical Supplies, LLC, has agreed to resolve allegations that the company violated the Oklahoma Medicaid False Claims Act by inflating prices and shipping charges of durable medical equipment. Tri-State Medical Supplies has agreed to pay $363,116 to resolve the allegations. Tri-State Medical Supplies provided durable medical equipment and other services to Oklahoma Medicaid beneficiaries through a program administered by the Oklahoma Department of Human Services Developmental Disabilities Services Division. The settlement resolves certain allegations that Tri-State submitted claims to the Oklahoma Medicaid program, known as “SoonerCare,” based on inflated pricing and shipping charges. The Oklahoma Medicaid Fraud Control Unit (MFCU) began investigating Tri-State after receiving a referral from a program manager at OKDHS Developmental Disabilities Services Division (DDSD). The DDSD works with clients who are physically challenged. The program manager became suspicious when the claims of Tri-State were compared to claims from other companies that provided similar services and equipment.
