Vision services provider agrees to pay $8M for illegal Medicaid billing for child lenses

Sept. 9, 2026 (DENVER) – Attorney General Phil Weiser today announced a settlement with Hero DVO, LLC, a provider of vision services to underserved children, to resolve allegations that the company illegally billed the state’s Medicaid program for 123,990 unneeded corrective lenses. The company will pay the state $8 million under the agreement.

“Hero DVO perpetrated a scheme designed to bill for unneeded lenses that were never provided to patients,” Attorney General Weiser said. “Today’s action holds the company to account for its fraudulent conduct that harmed our state’s Medicaid program. We will continue to remain vigilant about protecting Colorado from fraudsters.”

Medicaid provides eligible Coloradans and their dependents with health care coverage, including vision coverage for children and those under the age of 20. Vision benefits include one pair of frames and two lenses. This includes lower-cost spherical lenses, which are for people with relatively lower prescriptions, and more expensive aspherical lenses, which are prescribed for those with higher prescriptions.

The investigation by the Medicaid Fraud Abuse and Neglect Unit in the Colorado Attorney General’s Office found that Hero DVO billed the state for two sets of lenses for nearly 124,000 claims but provided only one set to patients. While the company did provide aspherical lenses for children, it also billed the state for unnecessary spherical lenses that were never created.

Under the terms of the settlement agreement, Hero DVO will pay the state $8 million in quarterly installments over the next four years. The first payment of $125,000 will be made within five business days of the effective date of the agreement.

The Colorado Medicaid Fraud Abuse and Neglect Unit receives 75% of its funding from the U.S. Department of Health and Human Services under a grant award totaling $4,026,641.50 for federal fiscal year 2026. The remaining 25%, totaling $1,342,213.83, is funded by the state of Colorado for the federal fiscal year.

Read a copy of the settlement agreement (PDF).

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Media Contact:
Lawrence Pacheco
Chief Communications Officer
(720) 508-6553 office
lawrence.pacheco@coag.gov