DoJ: National Healthcare Fraud Takedown

In what the Justice Department is calling the largest takedown of healthcare fraud in U.S. history, federal authorities on Wednesday brought charges against 301 people for $900 million in false billings.

Among those charged includes 61 doctors, nurses, and other licensed medical professionals who, among other crimes, allegedly committed money laundering, identity theft, and Medicare Part D pharmacy fraud. Across the country, 23 states and 36 federal districts coordinated with the Justice Department and the Department of Health and Human Services to go after the alleged fraud schemes.

The defendants allegedly submitted Medicare and Medicaid claims the Justice Department said “were medically unnecessary and often never provided.” Some of the defendants were paid kickbacks for providing information for fraudulent bills. At least 28 doctors were among those charged on Wednesday. More from Atlantic.

 

Lynch/Justice Department: Good morning everyone and thank you all for being here.  I am joined by several key leaders in our nation’s efforts to address health care fraud: Department of Health and Human Services Secretary [Sylvia] Burwell; Assistant Attorney General for the Criminal Division [Leslie] Caldwell; United States Attorney [Wifredo] Ferrer of the Southern District of Florida; FBI Associate Deputy Director [David] Bowdich; HHS Deputy Inspector General for Investigations [Gary] Cantrell; DCIS Acting Director [Dermot] O’Reilly; and [Shantanu] Agrawal, Deputy Administrator and Director of the Center for Program Integrity at the Centers for Medicare and Medicaid Services.

We are here today to announce a significant step in the federal government’s ongoing work to keep our nation’s health care system free of fraud and exploitation and to ensure that taxpayer dollars are used lawfully and appropriately.  Over the last three days, the Medicare Fraud Strike Force – a joint effort between the Department of Justice and the Department of Health and Human Services – executed a significant nationwide health care fraud takedown.  This action involved charging or unveiling charges against  approximately 300 defendants in 36 federal districts for their alleged participation in a variety of schemes involving more than $900 million in fraudulent billings, making this the largest takedown in the Strike Force’s nine-year history.

The defendants named in these charges include doctors, nurses, pharmacists, physical therapists and home health care providers.  They are accused of a wide range of serious crimes, from conspiring to commit health care fraud to making false statements and from bribery to money laundering.  They submitted dishonest claims, charged excessive fees and prescribed unnecessary drugs.  One group of defendants controlled a network of clinics in Brooklyn that they filled with patients through bribes and kickbacks.  These patients then received medically unnecessary treatment, for which the clinic received over $38 million from Medicare and Medicaid – money that the conspirators subsequently laundered through more than 15 shell companies.  In another case, a Detroit clinic billed Medicare for more than $36 million, even though it was actually a front for a narcotics diversion scheme.  And yet another defendant took advantage of his position in a state agency in Georgia by accepting bribes and recommending the approval of unqualified health providers.  These are just a few examples of the criminals that we targeted in this operation and although the specific nature of their wrongdoing varied from case to case, all of them betrayed the basic principles of their professions.

In addition to the usual patterns of fraud and deception that we’ve encountered in the past, we also saw new trends emerging in this year’s charges.  For instance, in a number of cases involving the Medicare prescription drug benefit program known as Part D, we saw new evidence of identity theft, including the use of stolen doctors’ IDs to prepare fake prescriptions.  We have also seen a growing number of cases involving compounded medications, which are combinations of two or more drugs prepared by a licensed professional.  In recent years, the cost of these drugs has grown exponentially, making them a more attractive target for criminals looking to exploit them for profit.

As this takedown should make clear, health care fraud is not an abstract violation or benign offense.  It is a serious crime.  The wrongdoers that we pursue in these operations seek to use public funds for private enrichment.  They target real people – many of them in need of significant medical care.  They promise effective cures and therapies, but they provide none.  Above all, they abuse basic bonds of trust – between doctor and patient; between pharmacist and doctor; between taxpayer and government – and pervert them to their own ends.  The Department of Justice is determined to continue working to ensure that the American people know that their health care system works for them – and them alone.

In tackling these challenges, the Medicare Fraud Strike Force relies on close cooperation between the federal, state and local, governments.  Since 2014, the Justice Department’s Criminal Division has organized an annual National Health Care Fraud Training Conference for Assistant U.S. Attorneys and state and federal law enforcement officers, which has substantially expanded the reach of our actions.  More than 20 non-Strike Force U.S. Attorney’s Offices participated in this year’s takedown, helping us to combat health care fraud in a total of 30 federal districts nationwide, from Alaska to Florida.  We were also assisted by approximately 20 state Medicaid Fraud Control Units, a reflection of the close partnership between state and federal authorities in combatting health care fraud – a partnership that we will continue to strengthen in the days ahead.

I want to thank my colleagues in the FBI, the Criminal Division and U.S. Attorneys’ Offices for their ongoing efforts to combat health care fraud.  I want to thank all of the state and local law enforcement officers across the country who participated in this complex and fast-moving takedown.  And I look forward to continuing our work together in the days ahead.

At this time, I’d like to turn things over to Secretary Burwell, who has been a dedicated leader and indispensable partner in this critical work and who will provide additional details on today’s announcement.

DOJ: Lawyers Behind the N. Carolina Bathroom Lawsuit

Radicals….throughout the whole Justice Department but here are the backgrounds of those who Loretta Lynch has assigned to sue North Carolina on the bathroom (genderless) lawsuit. Terrifying….

The Justice Department sent out the guidance letter to public schools in several languages and that document is here.

This is a matter placed under Title IX, Sex Discrimination.

By the way, make sure you use proper words as you could be sued in this regard as well.

A sign marks the entrance to a gender-neutral restroom at the University of Vermont in Burlington, Vt.

These Are the Radical DOJ Lawyers Suing North Carolina Over Transgender Bathroom Use

Healthcare Provider Lawsuits v. Feds Begin

Blue Cross insurer sues U.S. for funds owed under health care law

BusinessInsurance: Highmark Inc. and its subsidiaries have sued the federal government for failing to pay funds the insurers say they are owed through one of the Affordable Care Act’s public health insurance exchange safety net programs.

Pittsburgh-based Highmark, the fourth-largest Blue Cross and Blue Shield insurer, is demanding $222.9 million, which it argues it is owed through the ACA risk corridor program for 2014 losses, according to the lawsuit filed Tuesday in the U.S. Court of Federal Claims in Washington.

Highmark said the government has paid only $27.3 million of the total owed for 2014. In early April, Highmark President and CEO David Holmberg said during an analyst call that the insurer was owed more than $500 million from the risk corridor program for 2014 and 2015.

The risk corridor program is intended to help stabilize premiums by offsetting insurers’ losses during the first three years of the public health exchanges.

But the U.S. Centers for Medicare and Medicaid Services last year said it would pay only 12.6% of the money insurers requested for 2014 losses. CMS said the rest of the tab would be paid in 2015 and 2016 if necessary.

The suit accuses the government of breach of good faith and fair dealing among other allegations.

CMS could not be immediately reached for comment.

“The United States has specifically admitted in writing its statutory and regulatory obligations to pay the plaintiff insurers the full amount of risk corridor payments owed to them for calendar year 2014, but it has failed to pay the full amount due,” the lawsuit states.

“Instead, the government arbitrarily has paid the plaintiff insurers only a pro-rata share — less than 12.6% — of the total amount due, asserting that full payment to the plaintiff insurers is limited by available appropriations, even though no such limits appear anywhere in the ACA or its implementing regulations or in the plaintiff insurers’ contracts with the government.”

In a statement Monday, Mr. Holmberg said the Highmark has a “fiduciary responsibility to our 5.2 million health plan members to seek payment.”

Still, Mr. Holmberg said the insurer “remains committed” to the public health exchanges.

Highmark said it tried to negotiate with CMS, which the insurer said refused requests for full payment. It also said CMS has taken the position that “none of the risk corridor payments” for 2014, 2015 and 2016 are due until fall 2017 after the program has concluded.

The insurers involved in the lawsuit, First Priority Life Insurance Co. Inc. et al v. USA, include First Priority Life Insurance Co., Highmark BCBSD Inc., Highmark Inc., Highmark Select Resources Inc., Highmark West Virginia Inc., and HM Health Insurance Co.

In February, Lake Oswego, Oregon-based insurer Health Republic Insurance Co. of Oregon, which now is out of business, filed a $5 billion class action against the federal government for failing to make the risk corridor payments.

**** Good news?

Sessions, Cassidy to introduce ‘The World’s Greatest Health Care Bill. Ever’

FNC: House Rules Committee Chairman Pete Sessions, R-Texas, and Sen. Bill Cassidy, R-La., plan to introduce what they are terming an “alternative” health care bill Thursday which will not repeal ObamaCare, but work alongside the existing Affordable Care Act and modify various parts of the system.

 

The legislation is technically called the HELP Act, short for “Health Empowerment Liberty Plan.”  Sessions however prefers a less clinical moniker with a title infused with a dose of Donald Trump-esque hubris. Instead, the Texas Republican calls the legislation “The World’s Greatest Health Care Bill. Ever.”

Sessions notes that the legislation allows people to keep ObamaCare if they so desire, noting that his measure does not entail a full repeal of ObamaCare.

“Someone who repeals (ObamaCare) is left with nothing,” he said.

That’s why his bill works in tandem with the existing law.

Meanwhile, it does get worse.

UnitedHealth Quits 27th Obamacare State as Insurer to Exit N.J.

Bloomberg: UnitedHealth Group Inc. is exiting New Jersey’s Obamacare exchange, marking the 27th state market the insurer is quitting.

UnitedHealth’s Oxford Health Plans unit won’t participate in New Jersey’s individual market in 2017, on the Affordable Care Act exchange or elsewhere, according to a letter obtained by Bloomberg through an open-records request. Another unit will continue selling plans outside of Obamacare, and the company will keep offering coverage to small businesses, according to Marshall McKnight, a spokesman for New Jersey’s Department of Banking & Insurance.

Chief Executive Officer Stephen Hemsley said last month that UnitedHealth would only offer ACA plans in a “handful of states” for 2017, though the company hasn’t listed them. The company is retreating from the markets created by the ACA amid mounting losses on the policies. Bloomberg has confirmed that the insurer is exiting at least 27 of the 34 states where it sold 2016 coverage.

The company will still probably sell ACA plans in at least three states next year: New York and Nevada have confirmed UnitedHealth’s participation and the company has filed plans to participate in Virginia.

In addition to UnitedHealth, several other insurers offered plans in New Jersey last year, according to the Kaiser Family Foundation. They include Oscar Insurance Corp., AmeriHealth, Health Republic Insurance of New Jersey and Horizon Blue Cross Blue Shield of New Jersey.

WTH Tennessee, Against Pro-Life Voters?

In Tennessee, a Federal Judge Disenfranchises Pro-Life Voters

DFrench/NRO: No one should ever doubt the Left’s commitment to abortion. For the sake of preserving the right to kill an unborn child, the Left will sacrifice democracy and even reason itself. Pro-life lawyers have a term for liberal judges’ tendency to twist the Constitution for the cause of death — the “abortion distortion.” The latest example comes from Nashville, Tenn., where an Obama-appointee federal judge just wrote perhaps the least credible judicial opinion I’ve ever read. But first, some background. Before the 2014 election, Tennessee, one of America’s most conservative and religious states, had become the South’s abortion supermarket, all because of a Tennessee Supreme Court ruling that declared that the Tennessee constitution protected the “right” to an abortion to a greater degree than did even Roe v. Wade or Planned Parenthood v. Casey. Consequently, even if a pro-life law would have passed federal constitutional muster, Tennessee state courts would strike it down.

 KAGSTV

Tennessee voters responded by passing Amendment 1 — a pro-life constitutional amendment that reversed the state’s high court and unequivocally declared that “nothing in this Constitution secures or protects a right to abortion or requires the funding of an abortion.” Tennessee’s amendment process is arduous. First, a proposed amendment has to pass with a majority in both houses. Then, after the next legislative election, the amendment has to pass with a two-thirds majority. Finally, it comes before the people. But even there an amendment faces a double hurdle. It has to pass with a majority of the vote, and the “yes” votes have to equal a “majority of all the citizens of the state voting for Governor.” For decades, Tennessee officials have interpreted this rule as merely requiring that the total “yes” vote exceed half of the total gubernatorial vote. In other words, a person could vote yes on the amendment and still have their vote count even if they didn’t vote for governor. In fact, amendment proponents expressly told voters that they could pursue exactly this strategy — they didn’t have to vote for governor to have their vote count.
After their loss, pro-abortion leftists sued in federal court, making the astonishing claim that this process violated the Fourteenth Amendment. Why? Because it didn’t give the “no” side enough advantages in the fight against the amendment. They claimed that Tennessee’s process violated their right to “participate on an equal basis with other citizens in the jurisdiction.” They also claimed that the Tennessee Constitution required election officials to count only the votes of people who voted for governor. So if you wanted your vote to count for the amendment, you had to vote for governor.
On Friday, Judge Kevin Sharp did what liberal federal judges do: found a way to rule for abortion rights. He backed the plaintiffs, holding that the traditional manner of counting votes for constitutional amendments violated both the state and the federal constitutions. He then ordered a statewide recount, in which only the votes of those who voted in both the amendment contest and the gubernatorial race would be counted.
In an opinion full of insulting asides and other potshots at amendment supporters, Sharp claimed that the votes of those who voted in the governor’s race but against the amendment were “not given the same weight” as those who voted for Amendment 1 but did not vote in the governor’s race. In other words, he claimed that a voter who did not vote for governor but did vote for the amendment had more influence over the process than a voter who chose to vote in both elections. Yet that additional influence was the product not of discrimination but of voter choice, of deliberate voting strategy.
The judge’s solution to this fabricated problem was to give the votes of those who voted for the amendment but not for governor no weight at all. In other words, his concern for voting rights (he called the right to vote “precious” and “fundamental”) was so strong that he just went ahead and disenfranchised thousands of voters who relied on longstanding state-government interpretations of its own constitution. Moreover, he signaled that even if a recount shows that the amendment would still pass under his new, judicially created standard, he may still rule that the election itself should be voided.

When I was in law school, one of my radical leftist professors declared that the role of a judge was to first determine the “right” result, then to manipulate law and precedent to justify the pre-ordained outcome. He turned the process of judicial reasoning on its head, and my classmates loved it. Abortion jurisprudence is the product of exactly this ideology. Sexual revolutionaries aren’t just professors, activists, and lawmakers. Some are robed Robespierres, and you can always count on them to protect the culture of death. — David French is an attorney, and a staff writer at National Review.

AmeriCorps: Broke the Rules with ‘abortion doulas’

AmeriCorps’ abortion escorts broke federal rules

TheHill: Several members of the national service program AmeriCorps recently escorted young pregnant women to abortion clinics in a “direct violation” of federal funding rules, a government watchdog will report Tuesday.

The volunteers served as clinic escorts, also known as “abortion doulas,” in parts of New York City, according to a source familiar with the report from a federal inspector general’s office. A summary of the report will be published online Tuesday.

In their roles, such volunteers provide emotional support to women seeking abortions, as well as transportation to and from the clinics if needed. That service is prohibited under the language of federal grants that helps fund the program, the source said.

The violation took place among “a few volunteer members” at one of the 38 community health centers that works with AmeriCorps’s health branch, according to a statement from the National Association of Community Health Centers (NACHC), which oversees AmeriCorps’ health volunteers.

Dave Taylor, chief operating officer of NACHC, said in a statement to The Hill that the group’s leadership “self-reported the issue to the proper authorities” immediately after learning about the potential violations.

“We take this matter seriously,” Taylor said, adding that the NACHC has cooperated with the White House’s community service office and the watchdog group throughout the investigation. He declined to provide any details about the investigation, but said his organization had received a copy of the full report.

The group said its response to the investigation has been far-reaching. Taylor said it quickly took steps to stop the program, while also requiring program staff to be retrained on “all relevant rules and regulations related to AmeriCorps prohibited activities.”

“We moved immediately to cease the activity in question, and suspended the identified site’s AmeriCorps members for a period until they and their site supervisors were retrained and revised member service contracts were reviewed and signed,” Taylor wrote in a statement.

The group also revised the contracts of 500 other partners “to prevent future misinterpretations.”

AmeriCorps is a federally funded community service program with about 80,000 volunteers nationally. The program is managed by the White House Corporation for National and Community Service, which received about $1.1 billion in federal funds last year.

**** In 2009, AllGov: Abortion Referral Prohibited for AmeriCorps

AmeriCorps became the center of media attention when the Edward M. Kennedy Serve America Act passed, tripling AmeriCorps’ size and allotting $5.7 billion in federal funding for the community service programs it provides. Few news sources noticed one controversial stipulation that was added to the bill: the prohibition of several activities, among them, abortion referral.

Beginning on October 1, AmeriCorps’ staff and members will be prohibited from “providing abortion services or referrals for receipt of such services.” In the past, AmeriCorps members have joined with clinics that offer abortion services and partnered with Planned Parenthood chapters to work on public health education topics. The new stipulation will allow members to volunteer or provide their services on their own time, but not while affiliated with AmeriCorps, itself.
Also included in the list of prohibited activities: engaging in protests, petitions, boycotts, or strikes; assisting, promoting, or deterring union organization; engaging in religious instruction and conducting worship services.