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Alere’s Arriva Medical Says Litigation Against CMS Can Proceed

NEW YORK (360Dx) – Alere diabetes subsidiary Arriva Medical said yesterday that a US District Court has denied a motion to dismiss its lawsuit against the Centers for Medicare and Medicaid Services (CMS). The court, however, also denied Arriva's request for interim relief in the case, which centers around revocation of the company's Medicare billing privileges.

According to Alere, in mid-October it received a letter from CMS stating that Arriva's Medicare supplier billing number was being revoked and that it would be barred from re-enrolling in the Medicare program for a period of three years because it had billed for items and services for deceased Medicare beneficiaries.

Alere maintained that the billing issue was primarily due to errors stemming from Medicare system flaws, and Arriva sued CMS to have its billing privileges temporarily reinstated while an appeal with CMS' administrative law judge was ongoing.

Arriva said today that its request for relief was denied by the court, but that its case against CMS was not thrown out. It noted that the court's decisions do not impact the administrative appeal filed in December.