St. Louis-based General American Life Insurance Company has settled the second biggest Medicare fraud case in the nation’s history. General American will pay $76 Million for lying to the agency that administers theMedicare program. The federal prosecutor says two former company employees filed a whistle-blower lawsuit, which was kept secret while the federal prosecutor investigated the claims. The suit was filed by an Arnold couple. They’llget more than $14-Million of the settlement. The lawsuit claimed General American covered up errors, allowing it to keep getting Medicare contracts which enabled it to make profits the company did not deserve. The prosecutor will not say if a criminal investigation has been started.
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