BBB Warning: Consumers say NYC businesses charge Medicare for medical items that were never ordered

According to consumer reports, two New York-based companies appear to be part of a Medicare billing scheme. Consumers have told the Better Business Bureau Serving Metro NY that two medical supply companies allegedly charge large sums of money to their Medicare or private insurance accounts for durable medical goods they never needed, ordered or received. The two companies named by consumers – Gazar Recovery Inc. and Almaz Med Supply Inc. – currently have F-ratings with the BBB® Serving Metropolitan New York.

“These companies have New York City addresses, but the consumers we hear from are located all over the country,” said Claire Rosenzweig, President & CEO of the Metro New York BBB. “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. Anyone can be a victim of insurance fraud, and everyone pays when health insurers and the federal government are defrauded.”

Gazar Recovery Inc. is a company that claims to be based in the Sheepshead Bay neighborhood of Brooklyn and, according to their state corporate registration, they began operating in August 2024. Gazar Recovery Inc. first came to BBB’s attention in October of 2024 when several consumers filed reports on BBB Scam Tracker^SM.

Almaz Med Supply Inc. claims to be located in Woodside, Queens. The business was evidently registered as a legal entity in March of 2023. They first came to BBB’s attention in September of 2024 when consumer complaints emerged.

As of this date, there are 103 Scam Tracker reports on Almaz Med Supply Inc., as well as 11 complaints with BBB. As for Gazar Recovery Inc., there are 12 Scam Tracker reports as well as 12 complaints with BBB. Complainants for both companies have alleged that these companies have charged their Medicare or insurance account for medical supplies they never ordered and do not need. Neither company has responded to BBB’s attempts to reach out to resolve the concerns.  

Consumers with outstanding concerns regarding Gazar Recovery Inc. or Almaz Med Supply Inc. may choose to file a complaint with a consumer protection agency such as the Federal Trade Commission, New York Attorney General's Office, and U.S. Department of Health & Human Services' Office of Inspector General and/or to consult qualified legal counsel. In addition, they can file reports on BBB Scam Tracker to share their experience and alert unsuspecting consumers.

Consumers are urged to check all Medicare or other medical insurance statements promptly and carefully and report any fraudulent orders or suspicious charges to Medicare.gov (click on “Basics” and then “Report Fraud”), or to the private insurer.

Consumers can also visit BBB.org to submit complaints and reviews, check out a business, learn more about scams, and find additional consumer tips. Additionally, consumers can report scams to BBB.org/ScamTracker.

BBB Serving Metropolitan New York contributed this article.