Adult Diaper Company Reamed Taxpayers: SoCal's Shield Healthcare Will Pay us Back $5 Million
This guy's a U.S. Senator. Really.
Turns out you, the American taxpayer, has been overpaying for adult diapers. (Yeah, we didn't realize we were buying them either).
The largest supplier of adult diapers in the nation charged us more than twice what it paid for the items, a no-no under federal law. Now Santa Clarita-based Shield Healthcare is sending us a $5 million check, according to a statement today from the U.S. Attorney's Office in L.A.
Ain't that some ...
The office says United States District Judge David O. Carter dismissed federal charges last month after the company agreed to give us our diaper refund.
According to the U.S. Attorney's statement:
The company allegedly evaded the regulation's upper billing limit, which requires that providers bill Medi-Cal no more than double their net purchase price.
U.S. taxpayers will get $2 million of the settlement while Californians will see $3 million (Medi-Cal is funded by both the state and feds).
Shield also makes waterproof sheeting. For when your bed has that not-so-fresh feeling.
The U.S. Attorney's office says a whistleblower actually blew the lid of this crap.
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