OraPharma, a company that sells oral health products, will pay $100,000 to resolve allegations that it submitted false claims to Medicare.
The false claims stem from incentive compensation OraPharma paid to account managers who also practiced as dental hygienists, according to a Feb. 6 news release from the U.S. Attorney's Office for the District of Massachusetts.
The dental hygienists promoted Arestin, an OraPharma product, to dental offices. They then received, or were eligible to receive, incentive compensation for Arestin prescriptions that they recommended to Medicare beneficiaries, the U.S. attorney's office said.
By working in a dental office, the hygienists were acting outside their scope of employment with OraPharma. This made any incentive compensation for any prescriptions reimbursed by Medicare violate the Anti-Kickback Statute of the False Claims Act, the release said.