Fifteen members of the Massachusetts orthopedic footwear industry have agreed to pay $526,000 to the Massachusetts Medicaid program to settle allegations that they were overpaid due to incorrect billing and poor documentation in violation of Medicaid regulations.

The settlement with the Attorney General's Office (AG) (see "archived articles") was a direct result of an April 2000 report of the Office of the Inspector General that revealed widespread waste and a pervasive pattern of abuse in the Medicaid Orthopedic Footwear Program. Following release of the 196 page report entitled Department of Medical Assistance- Orthopedic Footwear Benefits, Policies, and Procedures, April 2000 pdf format of Footwear Benefits, Policies, and Procedures, April 2000 file size 2MB , the AG's Medicaid Fraud Control Unit commenced an industry-wide investigation and Medicaid revised its orthopedic regulations based in part on the recommendations of the Office of the Inspector General.