Shares of Alere plunged Friday morning after the company disclosed in a filing that one of its units has seen its Medicare enrollment revoked.
The Centers for Medicare & Medicaid Services alleged that Alere subsidiary Arriva Medical submitted claims for 211 deceased patients over a five-year period. Alere said in a filing that CMS only specifically identified 47 of the claims.
The stock was halted at 10:40 a.m., ET, and again at 10:52 a.m., ET, for volatility. It plunged as low as 16 percent, but ended the day about 14.5 percent lower.
Alere told CNBC that it will continue its appeal process and that about 90 percent of Arriva patients are elderly and on Medicare/Medicaid. The company said "these situations are not uncommon in the industry due to the lag time between someone passing away and CMS' systems showing them as deceased."
The company said it has "positive confirmation" that it did not receive reimbursement for the cases cited. Alere added that the 211 claims were part of 5.8 million total claims over the five-year period.