Two New York-based medical supply companies have been accused of charging Medicare and other insurance agencies for supplies consumers say they never ordered or received.
Gazar Recovery Inc. and Almaz Med Supply Inc., both incorporated in the past two years, have each received numerous complaints in the past year from consumers, according to a Tuesday news release by the Better Business Bureau, a nonprofit group that helps consumers find trustworthy businesses and report unethical practices.
Several calls to the businesses weren’t returned Tuesday.
The two companies are accused of defrauding consumers and insurance companies. The complaints include allegations that the businesses sent bills to consumers’ insurance providers for supplies the consumers say they had no knowledge of — and also sent them medical supplies they never ordered.
There are 103 BBB Scam Tracker reports against Almaz and 11 complaints, while there are 12 Scam Tracker reports and 12 complaints against Gazar. The Scam Tracker lets consumers report suspected scams, while a complaint is a formal request for help in resolving an issue between a consumer and a business, according to the BBB.
The large number of complaints put the companies on the BBB’s radar late last year, according to Walter Brewster, senior vice president for the Metro New York BBB. He said neither business responded to inquiries.
“The worst thing a company can do in our world is not answer,” Brewster said. “They never responded to us.”
The state business registry lists Gazar Recovery as active, with a mailing address in Monsey, New York. The BBB said in a statement that the business “claims to be based in the Sheepshead Bay neighborhood of Brooklyn.”
The state business registry also lists Almaz Med Supply as an active business with a mailing address in Woodside, Queens, and names an agent for the firm — Zurab Tsotskhalashvili. The BBB release named Tsotskhalashvili as Almaz’s owner but Newsday was not able to independently confirm that or the name the nonprofit organization gave for the other business owner.
A website for Almaz Med Supply describes the business as “your trusted medical supplier” and shows several photos of medical supplies including “comfort diabetic” shoes and “comfort” neck pillows, among other items.
Consumer beware
Brewster said that no complaints came from Long Island. But he said alleged scams like this can impact anyone at any time, and can be hard to avoid.
“[Alleged scammers] do it without asking the consumer or communicating with the consumer beforehand,” he said.
Brewster provided the following tips for avoiding and dealing with potential scams like the one Almaz and Gazar are accused of:
- Immediately speak with your insurance provider and make sure they know the products or services weren’t ordered or received.
- Never deal with companies you haven’t heard of.
- Check groups like the Better Business Bureau to see if the company has been the subject of complaints.
- Always review your insurance papers and explanation of benefits.
- Report suspicious activity to government agencies like the Federal Trade Commission or the State Attorney General’s Office.
“Consumers are urged to check insurance statements for accuracy and pay attention to who is billing your health insurance, whether it’s Medicare, Medicaid, or a private insurance provider,” said Claire Rosenzweig, president and CEO of the Metro New York BBB, in a statement. “Anyone can be a victim of insurance fraud.”