Medicare Fraud Investigation: Centurion Superior Medical LLC

In March 2026, CBS News Texas reported a Medicare billing investigation linked to Centurion Superior Medical LLC in North Austin. Allegedly, two employees were caught handling suspicious medical billing records. Nika Machutadze, associated with the company, faces accusations of submitting unauthorized Medicare claims for medical supplies.

Amid these findings, the federal government imposed a six-month nationwide moratorium on new Medicare enrollments for medical supply companies. This move aims to enhance oversight and prevent high-risk suppliers' entry. The suspension, not affecting current Medicare beneficiaries, intends to scrutinize entities like Centurion.

Records show Machutadze took control of Centurion in September 2025, submitting about 79,000 Medicare claims in just over a month, primarily for urinary catheters. Valued around $134 million, these claims faced Medicare reimbursement delays. However, supplemental insurers processed payments, funneling at least $988,830 to a Hong Kong account.

A federal complaint ties Machutadze to another enterprise in Florida with 1.64 million claims, totaling $3.33 billion. In February, Dr. Mehmet Oz, head of the Centers for Medicare & Medicaid Services, emphasized healthcare fraud's financial toll, estimating a $100 billion annual cost to the government, and affirmed a commitment to combating such fraud.

Medicare beneficiaries from various states spotlighted Centurion due to unauthorized charges on their statements for non-requested supplies. This raised red flags among individuals in Florida and Tennessee, with some noting unexpected charges despite no consultations or deliveries.

Investigators point to a systemic weakness where supplemental Medigap insurers automatically fulfill their payment obligations after initial Medicare claim processing, even if Medicare later suspends payments. Machutadze currently faces felony money laundering charges in Florida and contests the allegations, while the FBI continues its investigation without comment.