NAIMES: Scooter Store raided

HALIFAX, Va., Feb. 21, 2013—According to the National Association of Independent Medical Equipment Suppliers (NAIMES), federal and state agents armed with search warrants last Wednesday swarmed the New Braunfels, Texas, headquarters of The Scooter Store, one of the nation’s largest suppliers of power wheelchairs and scooters. Statement says investigators think the company committed Medicare fraud. The company’s commercials, still running on CNN during the channel’s report of the raid, offers to help people get a scooter and deal with Medicare and Medicaid.

Authorities wouldn’t comment on the reason for the raid, but a source familiar with the investigation said officials were looking for details of how The Scooter Store bills for its equipment. Investigators want to know whether the store pressured doctors to prescribe the scooters for people who might not need them or overcharged Medicare for the chairs.

Employees were told to leave Wednesday during the investigation and handed a document with FBI contact information.  “I’ve been with the company for 10 years. So, it’s a roller coaster. This is not the first time. I pray that everybody is OK and that they find employment,” said an unnamed employee.

The Scooter Store recently has drawn scrutiny for receiving millions in Medicare overpayments from 2009 to 2011. They repaid $19.5 million of over $108 million in identified overpayments, raising questions by lawmakers. Earlier this month, the company underwent another round of layoffs. That came after the Centers for Medicare & Medicaid Services said reimbursements for power chairs, scooters and other equipment will be sharply lower starting July 1. Go online to www.dmehelp.org.