The probe revealed that Gerner and Fetterman made millions of dollars by running a sophisticated, multi-layered insurance fraud scheme using Liberation Way. In just three years, the alcohol and drug treatment center became a $40 million enterprise with over $100 in billings to difference insurance companies.
Liberation Way targeted out-of-network insurance carriers including Independence Blue Cross, which was based in Philadelphia and a member of the Blue Cross/Blue Shield network. The alcohol and drug treatment center billed the insurance companies more than $115 million including $17 million in overbilling from July 2015 and early 2018, according to the Grand Jury.
Gerner and Fetterman also developed an elaborate kick-back scheme involving thousands of medically-unnecessary urine tests sent to a laboratory in Florida for analysis.
The lab billed insurance companies at excessive rates. Once the lab received the payments from insurance companies, it sends a portion to Fetterman and Gerner. Liberation Way harassed and threatened patients when insurance companies refuse to pay the unnecessay lab fees.
Combating opioid epidemic is a top priority
In a statement, Shapiro said, “The owners and operators of Liberation Way showed blatant disregard for the wellbeing of the people they were supposed to help, and for the opioid epidemic that is ravaging our communities.”
