Miami-Dade County HHA Owner Arrested for Defrauding Medicaid out of More Than $76,000
Owner of Hialeah Health Care Facilities Sentenced to 112 Months for Threatening Investigators and Defrauding Medicare
Former Medical Center Employee Pleads Guilty to Embezzling over $1 Million Dollars
Two Large Nursing Home Chains and Their Principals Pay $14 Million to Settle False Claims Act Case
DME Owner Pleads Guilty to Health Care Fraud and Aggravated Identity Theft
Swindlers Adapt to Crackdown on Health Care Fraud
Raleigh Man Sentenced to 90 Months for Medicare Fraud
Two Former Executives of Medical Manager Found Guilty in Securities Fraud Scheme
KV Pharmaceutical Subsidiary Pleads Guilty to Two Felonies Regarding Oversized Drugs
U.S. Files Complaint Against Virginia Medicaid Providers
California AG Subpoenas Health Plans over Claims Denials and Rate Hikes
HHS Posts Medical Record Privacy Breaches Affecting 500 or More Individuals
Shands Notifies Patients of Laptop Theft
Health Care System in Delaware Pays $3.3 Million
This Week’s Link: Testimony of Daniel R. Levinson, HHS Inspector General
Compliance & Ethics Social Network: What’s Getting Talked About?
Regulatory News
CMS Suspends Marketing and Enrollment for Fox Insurance Company Drug Plan
CMS Update
From the GAO
CMS Transmittals
From the OIG
Acronym Library
Headlines
Miami-Dade County HHA Owner Arrested for Defrauding Medicaid out of More Than $76,000
On March 3, 2010 Florida Attorney General Bill McCollum announced that a Miami-Dade County man has been arrested for defrauding the Florida Medicaid Program out of more than $76,000. Juan Blandy, the owner of Supreme Home Health Care Agency, Inc., was arrested by law enforcement officers with the Attorney General’s Medicaid Fraud Control Unit with assistance from Miami-Dade Police Department.
For more: Click here
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Owner of Hialeah Health Care Facilities Sentenced to 112 Months for Threatening Investigators and Defrauding Medicare
On March 2, 2010 U.S. Attorney for the Southern District of Florida Jeffrey H. Sloman announced sentencing of defendant Yamill Ramos Perez, 38, of Miami-Dade County, for health care fraud charges and harassing Medicare investigators. U.S. District Court Judge Patricia A. Seitz sentenced Ramos Perez to 112 months’ imprisonment for health care fraud and 60 months’ imprisonment for interstate harassment. The sentences are to run concurrent to each other, followed by a three year term of supervised release. In addition, Judge Seitz ordered restitution in the amount of $5,825,702 and ordered forfeiture of the defendant’s assets. For more: Click here
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Former Medical Center Employee Pleads Guilty to Embezzling over $1 Million Dollars
On March 3, 2010 U.S. Attorney for Massachusetts Carmen M. Ortiz announced that a Boston man pled guilty in federal court of embezzling over $1 million from Beth Israel Deaconess Medical Center. Richard P. Webb pled guilty before U.S. District Judge Joseph L. Tauro to one count of health care theft and embezzlement. For more: Click here
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Two Large Nursing Home Chains and Their Principals Pay $14 Million to Settle False Claims Act Case
On February 26, 2010 U.S. Attorney for Massachusetts Carmen M. Ortiz and Tony West, Assistant Attorney General for the Justice Department’s Civil Division announced that the Government has reached a $14 million settlement with Mariner Health Care, Inc. (“Mariner”), and SavaSeniorCare Administrative Services, LLC (“Sava”), both nursing home chains operating out of Atlanta, Georgia, and with their principals, Leonard Grunstein, Murray Forman and Rubin Schron. The settlement resolves the United States’ allegations that the defendants solicited and received kickback payments from Omnicare, Inc. (“Omnicare”), the nation’s largest pharmacy that specializes in dispensing drugs to nursing home patients. For more: Click here
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DME Owner Pleads Guilty to Health Care Fraud and Aggravated Identity Theft
On March 2, 2010 U.S. Attorney for the Southern District of Texas José Angel Moreno and Texas Attorney General Greg Abbott announced that Mento Nnana Kaluanya, a Texas resident born in the Federal Republic of Nigeria, entered a plea of guilty yesterday to one count of health care fraud and one count of aggravated identity theft. For more: Click here
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Swindlers Adapt to Crackdown on Health Care Fraud
According to a report published on March 2, 2010 in South Florida’s Business Journal “Like bugs scurrying out from under an overturned rock, the perpetuators of health care fraud in South Florida are finding new schemes to hide behind to siphon off public dollars.” For more: Click here
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Raleigh Man Sentenced to 90 Months for Medicare Fraud
On March 2, 2010 U.S. Attorney George E.B. Holding announced that in federal court yesterday United States District Judge James C. Dever, III, sentenced KALU KALU, 46, of Raleigh, North Carolina, to 90 months’ imprisonment followed by three years supervised release. Restitution in the amount of $4,611,988 was also imposed. For more: Click here
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Two Former Executives of Medical Manager Found Guilty in Securities Fraud Scheme
On March 1, 2010 the U.S. Department of Justice announced that two former executives of Medical Manager Health Systems Inc., (Medical Manager), a subsidiary of WebMD Corporation from 2000 to 2005, were convicted by a federal jury in Charleston, S.C., with participating in a conspiracy to fraudulently inflate the reported earnings of Medical Manager by more than $16.8 million between 1997 and 2003. For more: Click here
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KV Pharmaceutical Subsidiary Pleads Guilty to Two Felonies Regarding Oversized Drugs
On March 2, 2010 the U.S. Department of Justice announced that Ethex Corporation, a wholly owned subsidiary of St. Louis-based drug manufacturer, KV Pharmaceutical Company, pleaded guilty to two felonies and was sentenced in connection with the manufacturing of oversized prescription drug tablets. The government had charged that, despite having knowledge that the two drugs did not meet required specifications, Ethex violated the law by intentionally withholding this information from the Food and Drug Administration (FDA). Given the seriousness of Ethex’s conduct and the risk it posed to consumers of its drugs, the Justice Department pursued felony charges. For more: Click here
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U.S. Files Complaint Against Virginia Medicaid Providers
On March 2, 2010 the U.S. Department of Justice announced that The United States and the Commonwealth of Virginia have filed a False Claims Act complaint in the Western District of Virginia against Medicaid providers Universal Health Services Inc., Keystone Marion LLC and Keystone Education and Youth Services LLC . These entities did business as the Keystone Marion Youth Center, a residential facility in Marion, Va., which receives Medicaid funds to provide psychiatric counseling and treatment for boys ages 11-17. The United States’ and the Commonwealth of Virginia’s complaint alleges that the defendants billed Medicaid for inpatient psychiatric care that was not provided, in violation of federal and state Medicaid requirements, and falsified records to cover up their serious violations. For more: Click here
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California AG Subpoenas Health Plans over Claims Denials and Rate Hikes
On February 25, 2010 California Attorney General Edmund G. Brown Jr., who has an ongoing investigation into possibly illegal practices by some California health insurers, subpoenaed financial records and other documents from California's seven largest health insurance companies. For more: Click here
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HHS Posts Medical Record Privacy Breaches Affecting 500 or More Individuals
Data breaches are now available on the U.S. Department of Health and Human Services Web site. On March 2, 2010 WCVB TV reported that “Under a new federal law, all breaches that impact 500 or more patients must be reported to HHS within 60 days. Breaches affecting fewer than 500 people must be reported annually.” For more: Click here / HHS: Click here
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Shands Notifies Patients of Laptop Theft
On March 2, 2010 The Gainesville Sun reported that “Shands HealthCare has notified about 12,500 patients that a laptop containing their medical information was stolen in January.” For more: Click here
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Health Care System in Delaware Pays $3.3 Million
On March 2, 2010 The News Journal reported that “State and federal prosecutors announced Monday that Christiana Care Health System agreed to pay $3.3 million to resolve a whistleblower's lawsuit alleging kickbacks to doctors and misuse of state and federal health care funds. For more: Click here
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This Week’s Link
Testimony of Daniel R. Levinson, HHS Inspector General
before the Subcommittee on Labor, Health and Human Services, Education, and Related Agencies of the House Committee on Appropriations on efforts to combat health care fraud, waste, and abuse in Medicare and Medicaid. For more: Click here
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Compliance & Ethics Social Network: What’s Getting Talked About
Group: HIPAA Forum
Subject: Annual Reporting of Breaches Under HITECH
Click here for more
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This week, MediRegs provided TWCC readers with the following: CMS Transmittals and From the OIG.
Regulatory News
CMS Suspends Marketing and Enrollment for Fox Insurance Company Drug Plan
On February 26, 2010 the Centers for Medicare and Medicaid Services directed Fox Insurance Company of New York to immediately suspend marketing and enrollment of new members in the organization’s Medicare Part D prescription drug plans. CMS imposed this immediate sanction because the Fox drug plan has not been able to meet the prescription drug needs of some of its newest members, actions which could pose serious threats to their health and safety. For more: Click here
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CMS Update
Comment Period Closing on Proposed Rule for Medicare and Medicaid EHR Incentive Program/Meaningful Use
As part of the HITECH Act in 2009, CMS administers the Electronic Health Record (EHR) incentive programs under Medicare and Medicaid. CMS prepared a proposed rule on the EHR incentive programs for public comment. This proposed rule includes the definition of meaningful use and other requirements for qualifying for incentive payments. The comment period for this proposed rule closes on March 15, 2010. CMS welcomes your comments which may be submitted online here. For additional information on the proposed rule, visit this site on the web. Here you will find fact sheets, presentation materials summarizing the proposed rule, and links to the proposed rule itself.
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The Therapy Cap Exception Process Extended Under the "Temporary Extension Act of 2010”
The Temporary Extension Act of 2010, enacted on March 2, 2010, extends the therapy cap exceptions process through March 31, 2010, retroactive to January 1, 2010. Outpatient therapy service providers may now submit claims with the KX modifier, when an exception is appropriate, for services furnished on or after January 1, 2010 through March 31, 2010.
The therapy caps are determined on a calendar year basis, so all patients began a new cap on January 1, 2010. For physical therapy and speech language pathology services combined, the limit on incurred expenses is $1,860. For occupational therapy services, the limit is $1,860. Deductible and coinsurance amounts applied to therapy services count toward the amount accrued before a cap is reached.
Some therapy providers have been holding claims for services furnished on or after January 1, 2010, for patients who exceeded the cap but qualified for an exception under previous law. These providers may submit those claims to Medicare effective immediately. Therapy providers, who submitted claims which were denied, for services furnished on or after January 1, 2010, for patients who exceeded the cap but whose services now qualify for an exception, should contact their Medicare contractor to request that their claim be adjusted to add the KX modifier and ensure the appropriate exception applies.
A small number of therapy providers continued to submit claims with the KX modifier for services furnished on or after January 1, 2010, even though the exceptions process had expired on December 31, 2009. Medicare contractors held these claims and will now begin to release them for processing. These providers do not need to take any action on the claims that were held.
Providers who charged beneficiaries for services that exceeded caps, which are now payable under the exception process, should refund the beneficiary’s cost, less the appropriate amount of deductible and co-insurance. Affected claims should be either submitted or, if already submitted, the provider should contact their contractor for an adjustment.
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Internet-Based Provider Enrollment, Chain and Ownership System (PECOS)
To assist you in protecting, completing and submitting your Medicare enrollment application via Internet-based PECOS, we are providing the following enrollment reminders and tips.
Protect Your Privacy: Physicians and non-physician practitioners need to take steps to ensure that their Medicare enrollment information does not get into the hands of people who can use that information to commit fraud. (See the document titled, “Medicare Physicians and Non-Physician Practitioners - Protecting Your Privacy, Protecting Your Medicare Enrollment Record.” This document can be found here.)
Organizations Must Be Enrolled Before Individuals: Before a physician or non-physician practitioner can reassign their benefits to a medical group or clinic other than the one they solely own, the medical group or clinic must have an approved enrollment record in PECOS.
Initial Enrollment Application for an Individual: Physicians and non-physician practitioners who have not enrolled or updated their Medicare enrollment since November 2003 will need to complete an initial enrollment application. PECOS does not contain information for physicians and non-physician practitioners enrolled before November 2003 who have not updated their enrollment record since that time.
Using Internet-based PECOS: We suggest you use Internet-based PECOS because it is faster and more efficient than the paper enrollment application process. Before you begin to use Internet-based PECOS, you should:
- Be sure that you have the National Provider Identifier (NPI) that was assigned to you as an individual and, if you solely own an organization provider, the NPI assigned that was assigned to your organization.
- Review the document titled, “Internet-based PECOS -- Getting Started Guide for Physicians and Non-Physician Practitioners.” This document can be found here.
Internet-based PECOS Limitations: While Internet-based PECOS supports most Medicare enrollment application actions, there are some limitations. A physician or non-physician practitioner cannot use Internet-based PECOS to:
-Change his/her name or Social Security Number,
-Reassign benefits to another supplier if that supplier does not have an approved enrollment record in PECOS,
-Change in non-physician practitioner specialty type, or
-Change an existing business structure. For example:
o A sole owner of an enrolled Professional Association, Professional Corporation, or LLC cannot change the business structure to a sole proprietorship; or
o An enrolled sole proprietorship cannot be changed to a solely-owned Professional Association, Professional Corporation, or LLC.
Finalizing Submission and Responding to Development Request: After submitting an enrollment application via Internet-based PECOS, you:
-Must print, sign and date (blue ink recommend) the Certification Statement(s) and mail the Certification Statement(s) and supporting documentation to the appropriate Medicare contractor. The Medicare contractor will not begin to process your enrollment application until it receives a signed and dated Certification Statement.
-May be asked to make corrections or submitted additional documents by the Medicare contractor. In order for your application to be processed, you must submit this information.
Reporting Responsibilities: Physicians and non-physician practitioners enrolled in the Medicare program have reporting responsibilities. See the download section found here for information about your reporting responsibilities.
More Information: For more information about Internet-based PECOS, including contact information for the External User Services (EUS) Help Desk, click here and select the “Internet-based PECOS” tab on the left side of screen.
EUS Help Desk provides assistance physicians and non-physician practitioners if they encounter an application navigation or systems problem with Internet-based PECOS. A navigation problem occurs when a practitioner is unable to determine how to use Internet-based PECOS.
Physicians and non-physician practitioners who have problems with their User Ids or password should contact the NPI Enumerator at 1-800-465-3203.
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March 10, 2010 National Provider Call: 2010 Physician Quality Reporting Initiative & Electronic Prescribing Incentive Program
The Centers for Medicare & Medicaid Services’ (CMS) Provider Communications Group will host a national provider conference call on the 2010 Physician Quality Reporting Initiative (PQRI) and Electronic Prescribing Incentive Program (eRx). This toll-free call will take place from 1:30 p.m.– 3:30 p.m., EST, on Wednesday, March 10, 2010.
The PQRI is voluntary quality reporting program that provides an incentive payment to identified individual eligible professionals (EPs), and beginning with the 2010 PQRI, group practices who satisfactorily report data on quality measures for covered Physician Fee Schedule (PFS) services furnished to Medicare Part B Fee-For-Service (FFS) beneficiaries.
The PQRI was first implemented in 2007 as a result of section 101 of the Tax Relief and Health Care Act of 2006 (TRHCA), and further expanded as a result of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (MMSEA), and the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA). The eRx Incentive Program is an incentive program for eligible professionals initially implemented in 2009 as a result of section 132(b) of the MIPPA. The eRx Incentive Program promotes the adoption and use of eRx systems by individual eligible professionals (and beginning with the 2010 eRx Incentive Program, group practices).
Following a few program announcements and updates, the lines will be opened to allow participants to ask questions of CMS PQRI and eRx subject matter experts.
Educational products are available on the PQRI dedicated web page located here, on the CMS website, in the Educational Resources section, as well as educational products are available on the eRx dedicated web page located here on the CMS website.
Conference call details:
Date: March 10, 2010
Conference Title: Physician Quality Reporting Initiative (PQRI) - National Provider Call
Time: 1:30 p.m. EST
In order to receive the call-in information, you must register for the call. It is important to note that if you are planning to sit in with a group, only one person needs to register to receive the call-in data. This registration is solely to reserve a phone line, NOT to allow participation.
Registration will close at 1:30 p.m. EST on March 9, 2010, or when available space has been filled. No exceptions will be made, so please be sure to register prior to this time.
- To register for the call participants need to click here and
- Fill in all required data.
- Verify your time zone is displayed correctly the drop down box.
- Click "Register".
- You will be taken to the “Thank you for registering” page and will receive a confirmation email shortly thereafter. Note:Please print and save this page, in the event that your server blocks the confirmation emails. If you do not receive the confirmation email, please check your spam/junk mail filter as it may have been directed there.
For those of who will be unable to attend, a transcript of the call will be available at least one week after the call here on the CMS website.
If you require services for the hearing impaired please send an email to: Medicare.TTT@PalmettoGBA.com.
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Program Advisory and Oversight Committee (PAOC) Meeting on DMEPOS Competitive Bidding Program
When and Where:
March 17, 2010
8:00 A.M. - 4:30 P.M. (Eastern Daylight Time)
Centers for Medicare & Medicaid Services
7500 Security Boulevard
Baltimore, Maryland 21244
The Centers for Medicare & Medicaid Services (CMS) will be hosting a meeting with the Program Advisory and Oversight Committee (PAOC) on March 17, 2010 to discuss the Round 1 Rebid and upcoming Rounds of the Medicare DMEPOS Competitive Bidding Program. The agenda for the meeting is available on the CMS website here.
Registration for the meeting is now open. To register, please click here. Registrations must be received no later than 5:00 p.m. Eastern Standard Time on March 12, 2010.
Meeting attendees should allow plenty of time to ensure access to the CMS facility. CMS security procedures require that all visitors are subject to a vehicular search and can only gain access through the Central Building Main Lobby. All visitors must also be in possession of a valid, government-issued form of photo identification, such as a driver's license, age of majority card, passport or visa.
For information about the DMEPOS competitive bidding program, please click here.
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Open Door Forum
The next Rural Health Open Door Forum is scheduled for Tuesday, March 9, 2010 from 2pm-3pmET. Click here
The next Home Health, Hospice & DME Open Door Forum is scheduled for Wednesday, March 10, 2010 from 2pm-3pmET. Click here
The next Skilled Nursing Facilities (SNF)/Long Term Care (LTC) Open Door Forum is scheduled for Thursday, March 11, 2010 from 2-3pmET. Click here
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From the GAO
Medicare Part D: Spending, Beneficiary Cost Sharing, and Cost-Containment Efforts for High-Cost Drugs Eligible for a Specialty Tier. GAO-10-242, January 29. Click here /
Highlights: click here.
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CMS Transmittals
National Coverage Analyses
Ventricular Assist Devices as Destination Therapy (CAG-00119R2) - Expected Completion Date: 11/20/2010: Click here
Collagen Meniscus Implant (CAG-00414N) - Expected Completion Date: 5/25/2010: Click here
Cardiac Rehabilitation Programs (CAG-00089R2) - Expected Completion Date: 2/23/2010: Click here
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From the OIG
Advisory Opinions
OIG Advisory Opinion 10-02 - Concerning the use of a "preferred hospital" network as part of a Medicare Supplemental Health Insurance ["Medigap"] policy: Click here
OIG Advisory Opinion 10-01 - Concerning the use of a "preferred hospital" network as part of a Medicare Supplemental Health Insurance ["Medigap"] policy:
Click here
OIG Advisory Opinion 10-03 - Concerning the use of a "preferred hospital" network as part of a Medicare Supplemental Health Insurance ["Medigap"] policy:
Click here
Corporate Integrity Agreements
Cathedral Rock Corporation - Fort Worth, TX - 1/6/2010 (PDF): Click here
Cathedral Rock Management LP - Fort Worth, TX - 1/6/2010 (PDF): Click here
Cathedral Rock Investments, Inc. - Fort Worth, TX - 1/6/2010 (PDF): Click here
Cathedral Rock Management I, Inc. - Fort Worth, TX - 1/6/2010 (PDF): Click here
City of Wheaton, Minnesota, d/b/a Wheaton Community Hospital - Wheaton, MN - 1/4/2010 (PDF): Click here
FORBA Holdings, Inc. - Nashville, TN - 1/15/2010 (PDF): Click here
Harrington, C. Kent - Fort Worth, TX - 1/6/2010 (PDF): Click here
Blood and Marrow Transplant Group of Georgia, P.C. - Atlanta, GA - 10/16/2006 - CLOSED: 2/1/2010 (PDF): Click here
Copiah Medical Associates, LLP - Hazelhurst, MS - 12/11/2006 - CLOSED: 1/22/2010 (PDF): Click here
Proviso Family Services d/b/a Resurrection Behavioral Health - Chicago, IL - 10/13/2004 - CLOSED: 1/20/2010 (PDF): Click here
Rotech Healthcare, Inc. - Orlando, FL - 2/11/2002 - CLOSED: 1/26/2010 (PDF): Click here
Wong, Nancy - Tacoma, WA - 11/15/2005 - CLOSED: 1/19/2010 (PDF): Click here
List of Excluded Individuals/Entities
OIG 01/10 Cumulative Sanction Report-Reinstatements for January 2010 (Excel): Click here
OIG 01/10 Cumulative Sanction Report-Update for January 2010 (Excel): Click here
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Acronym Library
CCA Catastrophic Coverage Act
CCIP Chronic Care Improvement Programs
CCN Carrier Control Number
Click here for more from CMS Acronyms
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Visit www.hcca-info.org and see for yourself.
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