Daily News Article - April 3, 2013
1. a) Why are doctors concerned by the advertisements scooter companies use to sell their scooters?
b) Why is Congress concerned by power scooter advertisements?
2. Why do critics oppose scooter advertisements?
3. How do scooter companies defend their advertising?
4. By how much have scooter stores increased their advertising in the past 5 years?
5. a) What are Medicare's requirements for a patient to be eligible for a scooter?
b) Medical insurance executives say doctors don't understand the Medicare requirements making patients eligible for reimbursement for a scooter. How does Dr. Stephen Peake, the medical director for Blue Cross Blue Shield Tennessee, explain the problem of doctors prescribing scooters for patients who don't really need them?
6. a) Why did the U.S. Justice Department sue The Scooter Store in 2005?
b) After The Scooter Store lost the case and settled for $4 million in 2007, how much did government auditors estimate The Scooter Store took in in improper payments (Medicare fraud) over a 5 year period?
7. a) Again in 2011, government auditors estimated The Scooter Store received between $47 - $88 million in improper payments for scooters. How did The Scooter Store respond?
b) Who calculated the improper charge amount to be repaid to Medicare?
8. Scooter company ads often include language that the scooters can be paid for by Medicare or other insurance: One Hoveround ad states: "Nine out of ten people got them [scooters] for little or no cost."
Re-read paragraphs 16-23. In your opinion, are The Scooter Store and Hoveround's business practices ethical? Explain your answer.
9. What responsibility do the following people have in preventing unnecessary scooters being paid for by Medicare? Explain your answers.