For more information or to join this case, contact us by clicking here, calling (914) 775-8862, or emailing us at case@wittelslaw.com.
On February 17, 2022, WMP filed a lawsuit in Kings County New York Supreme Court to recover tens of millions of dollars for patients victimized by CareCube’s illegal billing schemes related to the COVID pandemic.
CareCube has been systematically charging patients for bogus doctor visits they claim were needed before CareCube would administer a COVID-19 test. CareCube has also systematically charged patients for their COVID-19 tests upfront while falsely assuring customers that they will eventually receive reimbursement.
As the lawsuit details, while consumers waited in long lines for COVID-19 tests, CareCube’s revenue skyrocketed, and the company expanded across New York City. Dozens of unhappy customers complained in online forums, to legislative officials, and to reporters that they were charged for doctor visits that never happened and that CareCube broke its promise of free COVID testing. In August 2021, CBS New York reported on the many online and Better Business Bureau complaints about CareCube’s fake billing, prompting New York City Comptroller Brad Lander to contact the New York Attorney General’s office and call for an investigation of CareCube’s “deceptive and fraudulent practices.”
WMP’s class action amplifies Lander’s alarm that CareCube is “adding in just made-up other charges” to consumers’ bills. On January 6, 2022, the New York Attorney General’s Office announced that it was officially investigating CareCube, followed by a report from New York Magazine that the company is also under Department of Justice scrutiny.
CareCube’s sneaky practices are emblematic of the rampant medical billing fraud in America today. The National Health Care Anti-Fraud Association conservatively estimates annual health care fraud at $108 billion. COVID-19 scams are also widespread, leaving governments to warn the public to stay vigilant. The United States Food and Drug Administration, United States Department of Health and Human Services Office of Inspector General, and New York Department of Financial Services have also issued warnings to consumers. Meanwhile. CareCube has been growing under the aegis of a legitimate medical services provider.
“This suit will prove that CareCube engaged in a massive medical billing scheme throughout New York City,” says Steven L. Wittels, partner with WMP. “For example, our clients were told their COVID tests would be reimbursed by their health insurer, but CareCube billed one individual $225 for a fake doctor’s visit instead of the PCR tests she solely received. Even a quick review of consumer websites shows that CareCube fleeces consumers for fake consultations and pulls a bait-and-switch where CareCube tells patients at the last second that prices have increased or otherwise misbills consumers to increase the company’s profits. Many consumers reported that CareCube refused to provide receipts, which from CareCube’s perspective, is a simple way to hide illegal billing practices.”
The lawsuit seeks to recover money consumers paid for illusory doctors’ visits and other fraudulent billing practices in addition stopping CareCube’s illegal practices. The Plaintiffs’ legal team, Wittels McInturff Palikovic, have requested a jury trial.
To read the Class Action Complaint, click here.
To contact us about this case, click here.