Web Black Market in Diabetic Supplies Costs Government $200m

The Daily Beast: Diane Dimond – Mar 11, 2012 3:04 PM EDT.

Last month, the federal government won its case against Gary Winner, the CEO of Planned Eldercare, an Illinois medical-supply company. Winner had been charged following an intensive investigation which found that his company preyed on older patients by asking for their Medicare number in return for free medical devices.

Many of Winner’s marks had diabetes, and he sent them what every diabetic needs: blood-testing strips and lancets, which they use to monitor their blood glucose levels—some of them several times a day. But Winner also threw in various ankle, knee, and elbow braces, and even erectile-dysfunction machines. According to court papers, Winner bought penis pumps from a California sex-toy shop, repackaged them and labeled them as medically necessary devices for diabetes to “help increase blood flow to the prostate.” Planned Eldercare then billed Medicaid at a 1000% markup, for a total of more than $370,000. Read More