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Drug clinic admits phony billing scheme, agrees to pay NYS $6 million

MM Curator summary:

 
 

Steven Yohay of Brooklyn paid homeless New Yorkers to admit into his rehab facilities, stealing $3M from NY Medicaid.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

Bribed homeless people to enroll, used forged evaluations

New York Attorney General Letitia James on Monday announced an agreement with A.R.E.B.A.-CASRIEL, Inc. d/b/a/ Addiction Care Interventions Chemical Dependency Treatment (ACI) and its majority owner, Steven Yohay, regarding multiple schemes that defrauded the state Medicaid program, as part of a joint state-federal investigation. 

Filed this past Friday in the United States District Court for the Southern District of New York, ACI and Yohay admitted that they failed to respond to reports of wrongdoing — which the investigation substantiated — that ACI engaged in multiple illegal schemes, including that its employees bribed homeless people into getting inpatient treatment there.

ACI admitted to many instances of  fraudulent behavior, such as: paying an individual for a “no-show” job at ACI, while that person worked as a full-time employee at another organization with the same function as ACI; encouraging “outreach” drivers who regularly bribed potential Medicaid patients into seeking inpatient treatment at ACI, many of whom were experiencing homelessness at the time; and allowing Medicaid patients to enroll in its inpatient treatment program despite not being evaluated by a qualified health care professional. 

Instead of the evaluations, ACI used fraudulent signatures from medical providers that were photocopied onto medical forms in order to falsely substantiate an evaluation by a medical provider where none had occurred, the New York State AG’s Office said. 

Among these allegations, the most serious incidents took place between January 2014 and December 2019, when ACI’s “outreach” drivers coerced out-of-state residents to enroll in ACI’s inpatient treatment program by offering them money, drugs and/or alcohol. 

“Exploiting individuals who are experiencing homelessness is disgraceful,” said Attorney General James. “My office will use its power to seek out Medicaid providers looking to defraud the Medicaid system and New York state taxpayers.”

ACI has agreed to reimburse the New York state Medicaid program in the amount of $3 million, and Yohay personally agreed to reimburse the New York state Medicaid program another $3 million. 

Additionally, all current owners of ACI, including Yohay’s brother, agreed to divest themselves of their ownership interests in ACI. Yohay has also agreed to be banned from participation as a provider in any government-funded health care program for fifteen years. 

–>

The new owners of ACI have agreed to be bound by the terms of this agreement, which includes changes to the ACI program to ensure it steers clear of future illegal conduct. 

The case against ACI and Yohay was initiated by a former employee and whistleblower, who will receive a portion of the agreement. The whistleblower lawsuit was filed under the qui tam provisions of the federal and New York State False Claims Act, which allows average citizens to file civil actions on behalf of the government and to share in the proceeds of any recovered funds.

New York’s claims in the qui tam case were handled by the Medicaid Fraud Control Unit (MFCU) in the Office of the Attorney General (OAG), which worked closely with the U.S. Attorney’s Office for the Southern District of New York.

This case is being prosecuted by Special Assistant Attorneys General David G. Abrams and Amy B. Delfyett, with assistance from Civil Enforcement Chief Alee N. Scott and NYC Regional Director Christopher M. Shaw. 

The Medicaid Fraud Control Unit of the Office of the New York State Attorney General enforces laws that protect the public by addressing Medicaid provider fraud and that protect nursing home residents from abuse and neglect.

If someone believes they have information about Medicaid provider fraud or about an incident of abuse or neglect of a nursing home resident, they can file a confidential complaint online on the OAG website at https://ag.ny.gov/nursinghomes or by calling the MFCU hotline at 212-417-5397. 

Clipped from: https://brooklyneagle.com/articles/2020/12/22/drug-clinic-admits-phony-billing-scheme-agrees-to-pay-nys-6-million/

 
 

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Trump commutes Philip Esformes’ prison sentence

MM Curator summary:

 
 

Trump pardoned the Miami fraudster behind a $1.3B Medicare and Medicaid fraud scheme.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

Clipped from: https://www.chicagotribune.com/news/criminal-justice/ct-philip-esformes-fraud-trump-clemency-commutation-20201223-tfn7rveawzdhjmhee6hx7eoccm-story.html

 
 

In this Aug. 7, 2015, file photo, Philip Esformes arrives at the 15th Annual Harold and Carole Pump Foundation Gala held at the Hyatt Regency Century Plaza, in Los Angeles. (Rob Latour/Invision/AP)

Chicago-area nursing home mogul Philip Esformes was once called the “king” of Medicaid fraud, accused of cycling elderly, destitute and drug-addicted patients through his network of facilities and billing millions of dollars to government programs, often for services never rendered, according to federal prosecutors.

In sentencing Esformes to 20 years in prison last year, a federal judge in Miami called the length and scope of his criminal conduct “unmatched in our community, if not the country” and an “epic” violation of trust.

Now, Esformes, 52, is a free man, released from a Florida prison on Tuesday after President Donald Trump commuted his sentence, granting clemency to 20 people in all. The group included former Republican members of Congress; military contractors convicted of killing civilians in Iraq; and Chicagoan George Papadopoulos, a campaign aide who pleaded guilty to making false statements in the investigation into Russian interference in the 2016 election.

Esformes was arrested in 2016 at his Miami estate and charged with a massive $1.3 billion Medicare and Medicaid fraud scheme that at the time was billed by the U.S. Justice Department as the largest single criminal health care fraud case ever brought.

In announcing the president’s decision, the White House said the clemency was supported by former Attorneys General Edwin Meese and Michael Mukasey, as well as former Deputy Attorney General Larry Thompson.

A statement by press secretary Kayleigh McEnany alluded to Esformes’ pending appeal of his conviction, which alleged massive overreach by overzealous prosecutors who used illegally gathered evidence at trial that violated the attorney-client privilege. The statement also noted that Esformes “has been devoted to prayer and repentance” while in prison and is in declining health.

His attorney, Howard Srebnick, did not comment directly on the president’s order, but said in a statement that the comments from the White House demonstrate “that the president was deeply disturbed by the prosecutors’ invasion of the attorney-client privilege.”

The Chicago Tribune began chronicling Esformes’ rise to nursing home mogul more than a decade ago, when he, along with his father and business partner controlled a network of more than two dozen health care facilities that stretched from Chicago to Miami.

At one point, the flashy, Ferrari-driving Esformes owned millions of dollars in real estate, crisscrossing the country on private jets to spend time at his luxury condominium on Chicago’s Magnificent Mile and mansions in Miami and Los Angeles.

But allegations of fraud and neglect piled up in Chicago and Miami. A 2010 whistleblower lawsuit alleged that the giant pharmaceutical firm Omnicare Inc. paid millions in kickbacks to secure long-term contracts with Esformes’ facilities, the Tribune reported.

The Tribune also found that families had filed 20 wrongful death lawsuits over a four-year period against seven of Esformes’ facilities in Miami-Dade County, including one case where a patient was allegedly attacked by a fellow resident, then sent to another Esformes-owned facility, where he suffered a catastrophic fall and died of a brain injury.

His indictment alleged Esformes and a handful of Miami co-conspirators bilked the federal programs for 14 years by cycling some 14,000 patients through various facilities, where many received unnecessary or even harmful treatments. Drug addicts were allegedly lured to the facilities with promises of narcotics, and prosecutors say some received OxyContin and fentanyl without a physician’s order to entice them to stay.

He housed elderly patients alongside younger adults who suffered from mental illness and drug addiction — sometimes with fatal results, prosecutors alleged. In Esformes’ Oceanside Extended Care Center in Miami Beach, “an elderly patient was attacked and beaten to death by a younger mental health patient who never should have been at (a nursing facility) in the first place,” prosecutors wrote in a pre-sentencing memorandum.

As part of the kickbacks exchanged between Esformes and corrupt medical professionals, “high-end escorts” were flown to Orlando and chauffeured in limousines for liaisons with Esformes at the Ritz-Carlton Hotel, according to prosecutors.

Esformes, meanwhile, drove a $1.6 million Ferrari Aperta and published a blog with fitness tips for busy executives, prosecutors said. He even used some $300,000 in stolen proceeds to bribe the head men’s basketball coach at the University of Pennsylvania to admit Esformes’ son to the school, according to one count of the indictment.

That coach, Jerome Allen, pleaded guilty to money laundering and testified against Esformes at the Miami trial.

A jury convicted Esformes of paying bribes, money laundering, and other crimes, but was unable to reach a verdict on the main count of conspiring to defraud the Medicare program for the elderly and indigent. His appeal is pending before the 11th Circuit U.S. Court of Appeals in Florida, records show.

At his sentencing hearing in January 2019, Esformes wept and pleaded for mercy, saying “there is no one to blame but myself.” While preparing his defense, Esformes told the judge, he had listened repeatedly to wiretapped conversations that revealed him arranging bribes and was “disgusted” by what he heard.

“The Phil Esformes you heard was reckless … an arrogant man,” he said, crying as he pounded the lectern with his fist.

Prosecutors had requested 30 years behind bars. But U.S. District Judge Robert Scola Jr. said he was taking into account Esformes’ history of helping people in need.

Attorneys for Esformes had described him as a selfless philanthropist who had donated more than $15 million to synagogues, schools and needy individuals, often anonymously.

jmeisner@chicagotribune.com

 
 

 
 

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North Dakota AG charges service provider with Medicaid fraud

MM Curator summary:

 
 

Rebecca Fruge fraudulently billed $76,000 for in home medical services for times her client was in the hospital, and for 3 different 24 hour days.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

BISMARCK, N.D. (AP) — The North Dakota attorney general’s office is charging a Mandan woman with Medicaid fraud for allegedly submitting $76,000 worth of claims for work she did not perform.

The Bismark Tribune reports the Department of Human Services began looking into claims Rebecca Fruge made for in-home medical services after she claimed she had performed more than 24 hours of work on three separate days in May last year.

The department also found that Fruge’s client was in the hospital for one of those days and could not have received services from her. Fruge has denied submitting incorrect or fraudulent claims, investigators say.

 
 

 
 

Clipped from: https://www.kxnet.com/news/local-news/north-dakota-ag-charges-service-provider-with-medicaid-fraud/

 
 

 
 

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Kentucky dentist who pulled good teeth sentenced to prison

MM Curator summary:

 
 

A Kentucky dentist plead guilty to stealing $70,000 from Medicaid in an upcoding scheme.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

Crime


By Bill Estep

December 17, 2020 09:27 AM

An Eastern Kentucky dentist who admitted getting higher payments from Medicaid through inflated bills has been sentenced to four months in prison.

Denver “Dickie” Tackett also must serve six months of home detention after his prison sentence, repay $70,012 to Medicaid and pay the government $20,000.

U.S. District Judge Gregory F. Van Tatenhove sentenced Tackett on Tuesday.

Tackett, who practiced for more than 30 years at McDowell, in Floyd County, pleaded guilty in August to a charge of health care fraud.

Tackett acknowledged that he submitted claims for treating patients that were not reasonable and necessary between 2003 and 2018.

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One example was that he filed claims to be paid for performing more complex surgical tooth extractions when he had only done simple extractions, which were reimbursed at a lower rate, according to the plea agreement.

Tackett billed Medicaid for some medically unnecessary procedures; submitted claims for providing emergency care without sufficient justification; and filed claims to get paid for procedures related to an earlier unnecessary extraction, the plea agreement said.

Tackett acknowledged pulling people’s teeth when it wasn’t necessary, but his attorney, Andrew L. Sparks, said patients asked Tackett to do that.

It was not uncommon for people to ask to have their teeth pulled while the service was covered by Medicaid out of concern that they would lose coverage later, Sparks said in a sentencing memorandum.

The indictment in the case also charged Tackett with 15 counts of improperly distributing opioid pain pills, but those charges were dropped as part of the plea.

Sparks sought probation for Tackett, noting letters of support that described Tackett as a caring, dedicated dentist who worked long hours to help people, treated patients even if they couldn’t pay and sometimes paid for a patient’s prescription.

One woman described how her son damaged a front tooth playing basketball and Tackett opened his office at 7 p.m. on Christmas Eve to treat him, saving the tooth.

Tackett, who is an ordained minister through the United Methodist Church and the Assembly of God Pentecostal Church, was not motivated by a desire for wealth, according to the sentencing memo.

“Dr. Tackett’s history and characteristics show a man dedicated to his faith, his family and his patients,” the memo said. “These letters make clear that Denver Tackett is a good and decent man.”

Sparks argued Tackett had been punished enough by losing his practice.

Prosecutors argued for a sentence of 18 to 24 months, saying the health care system depends on providers being trustworthy and assumes that they will only bill for necessary services they actually perform.

A review by a consultant at the University of Kentucky showed a pattern by Tackett of prolonging treatment and performing procedures patients didn’t need, resulting in payments to him, prosecutors said.

Prosecutors also argued that prescriptions Tackett wrote for opioid painkillers played a role in the drug problem.

“Several of these patients told investigators that they became addicts as a result of Dr. Tackett’s prescriptions or that Dr. Tackett contributed to their addictions by continuing to prescribe controlled substances to them,” prosecutors wrote.

Tackett was among 60 health providers in seven states charged in April 2019 as part of an investigation of alleged improper prescribing.

Some other providers charged in Kentucky in the roundup have also been convicted.

Clipped from: https://www.kentucky.com/news/local/crime/article247913615.html

 
 

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Office Manager of doctor indicted for $23M in healthcare fraud pleads guilty

MM Curator summary:

 
 

A surgeon and his office manager billed Medicare and Medicaid for more than 3,000 surgeries that never happened. In the process they stole $23M.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

Kimberly Austin changed her plea in a hearing on the afternoon of Nov. 13.(WCTV)

TALLAHASSEE, Fla. (WCTV) – The office manager of Dr. Moses deGraft-Johnson plead guilty to one count of conspiracy to commit healthcare fraud on Friday. Kimberly Austin changed her plea in a hearing on the afternoon of Nov. 13.

Austin and deGraft-Johnson were indicted in February; the 58 count indictment alleges that they defrauded Medicare and Medicaid, billing for surgeries that were never performed. Prosecutors say the improper billing hit $23 million; they said in 3,600 surgeries billed over five years, 85 to 90% never happened.

Prosecutors also say the surgery deGraft-Johnson claimed to perform is “relatively rare,” and that he did not have enough of the devices required to do the surgeries.

The two worked at the Heart and Vascular Institute of North Florida.

The change of plea hearing for Austin lasted about 45 minutes, with the Judge checking that her guilty plea was not coerced and ensuring it is “voluntary and factual.”

Austin faces up to 10 years in prison for the conspiracy charge.

During her testimony, she said she was born, raised, and has always lived in Sneads, Florida.

She was visibly shaken during the testimony in front of Judge Mark Walker.

“It’s readily apparent to me that you’re upset, that you’re remorseful,” said Judge Walker. “I can tell this is a big deal to you.”

The Judge went over three documents during the hearing: a plea agreement, a supplemental plea agreement, and a statement of facts. He explained that it is up to the prosecutors to file a substantial assistance motion, depending on her testimony.

The statement of facts was 59 pages; Judge Walker cross-checked certain aspects with Austin.

“He used your assistance to pull of his scheme, correct?” he asked.

“Yes, sir,” said Austin.

“You admit you helped him commit healthcare fraud?”

“Yes, sir,” said Austin.

Austin testified that she covered for the doctor when patients called and complained, and said she knew he was billing for procedures that took place when he was out of the office.

She is out of custody under the conditions previously set by the magistrate judge. Austin’s sentencing is set for 2:30 p.m. on March 18; deGraft-Johnson’s trial is set for Jan. 25.

 
 

 
 

Clipped from: https://www.wctv.tv/2020/12/14/office-manager-of-doctor-indicted-for-23-million-in-healthcare-fraud-pleads-guilty/

 
 

 
 

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Kentucky dentist who pulled good teeth sentenced to prison | Lexington Herald Leader

MM Curator summary:

 
 

A Kentucky dentist plead guilty to stealing $70,000 from Medicaid in an upcoding scheme.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

Crime


By Bill Estep

December 17, 2020 09:27 AM

An Eastern Kentucky dentist who admitted getting higher payments from Medicaid through inflated bills has been sentenced to four months in prison.

Denver “Dickie” Tackett also must serve six months of home detention after his prison sentence, repay $70,012 to Medicaid and pay the government $20,000.

U.S. District Judge Gregory F. Van Tatenhove sentenced Tackett on Tuesday.

Tackett, who practiced for more than 30 years at McDowell, in Floyd County, pleaded guilty in August to a charge of health care fraud.

Tackett acknowledged that he submitted claims for treating patients that were not reasonable and necessary between 2003 and 2018.

News alerts in your inbox

One example was that he filed claims to be paid for performing more complex surgical tooth extractions when he had only done simple extractions, which were reimbursed at a lower rate, according to the plea agreement.

Tackett billed Medicaid for some medically unnecessary procedures; submitted claims for providing emergency care without sufficient justification; and filed claims to get paid for procedures related to an earlier unnecessary extraction, the plea agreement said.

Tackett acknowledged pulling people’s teeth when it wasn’t necessary, but his attorney, Andrew L. Sparks, said patients asked Tackett to do that.

It was not uncommon for people to ask to have their teeth pulled while the service was covered by Medicaid out of concern that they would lose coverage later, Sparks said in a sentencing memorandum.

The indictment in the case also charged Tackett with 15 counts of improperly distributing opioid pain pills, but those charges were dropped as part of the plea.

Sparks sought probation for Tackett, noting letters of support that described Tackett as a caring, dedicated dentist who worked long hours to help people, treated patients even if they couldn’t pay and sometimes paid for a patient’s prescription.

One woman described how her son damaged a front tooth playing basketball and Tackett opened his office at 7 p.m. on Christmas Eve to treat him, saving the tooth.

Tackett, who is an ordained minister through the United Methodist Church and the Assembly of God Pentecostal Church, was not motivated by a desire for wealth, according to the sentencing memo.

“Dr. Tackett’s history and characteristics show a man dedicated to his faith, his family and his patients,” the memo said. “These letters make clear that Denver Tackett is a good and decent man.”

Sparks argued Tackett had been punished enough by losing his practice.

Prosecutors argued for a sentence of 18 to 24 months, saying the health care system depends on providers being trustworthy and assumes that they will only bill for necessary services they actually perform.

A review by a consultant at the University of Kentucky showed a pattern by Tackett of prolonging treatment and performing procedures patients didn’t need, resulting in payments to him, prosecutors said.

Prosecutors also argued that prescriptions Tackett wrote for opioid painkillers played a role in the drug problem.

“Several of these patients told investigators that they became addicts as a result of Dr. Tackett’s prescriptions or that Dr. Tackett contributed to their addictions by continuing to prescribe controlled substances to them,” prosecutors wrote.

Tackett was among 60 health providers in seven states charged in April 2019 as part of an investigation of alleged improper prescribing.

Some other providers charged in Kentucky in the roundup have also been convicted.

Clipped from: https://www.kentucky.com/news/local/crime/article247913615.html

 
 

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Two area home health agency owners charged in health care fraud and illegal kickback scheme | Woodlands Online

MM Curator summary:

 
 

Charlz and Angela Bisong of Texas paid Medicare members to sign up for unneccessary services so they could steal $10M from Medicare.

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

HOUSTON, TX — Two home health agency owners are set to appear in federal court on charges they fraudulently billed more than $10 million to Medicare, announced U.S. Attorney Ryan K. Patrick.

Authorities arrested Tataw Charlz Bisong and Angela Bisong, both 57 and from Stafford, today. They are expected to make their initial appearances before U.S. Magistrate Judge Frances H. Stacy at 2 p.m.


A federal grand jury in Houston returned the indictment under seal Dec. 9, which was unsealed today. It alleges the Bisongs co-owned SierCam Healthcare Services LLC. From 2012 through 2020, SierCam allegedly billed Medicare for home health services that were not medically necessary and often not provided as billed to Medicare. The charges allege the Bisongs paid SierCam patients to sign up for medically unnecessary home health services and provided free transportation and covered the copayments and other fees at doctor’s office visits to facilitate their health care fraud scheme. Additionally, the Bisongs created phony medical records to make it appear the services met Medicare’s criteria for reimbursement, according to the indictment.


Charlz and Angela Bisong are both charged with one count of conspiracy to commit health care fraud, six counts of health care fraud and one count of conspiracy to pay and receive health care kickbacks.


Conspiracy to commit health care fraud and each of the six counts of health care fraud carry a maximum sentence of 10 years in federal prison and a maximum $250,000 possible fine, upon conviction. If convicted of conspiracy to pay and receive health care kickbacks, they also face up to five years in federal prison and a possible $25,000 maximum fine.


The FBI, Department of Health and Human Services?Office of Inspector General and Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. The Stafford and Sugar Land Police Departments assisted in the arrests. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.


An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

 
 

 
 

Clipped from: https://www.woodlandsonline.com/npps/story.cfm?nppage=68674

 
 

 
 

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Centene Is Climbing on Its Plans to Buy Magellan Health for $2.2 Billion

MM Summary

Centene adds a giant pharmacy services component with the purchase of Magellan.

M&A activity continues to pick up in the health-care space.

Centene (ticker: CNC) announced Monday that it will pay $95 per share for Magellan Health (MGLN), a 14.7% premium over Magellan’s closing price last Thursday of $82.84. Shares of Magellan were up 12.3%, to $93.00, in early trading on Monday.

Shares of Centene, meanwhile, were up 1% at the open of trading Monday, to $60.62.

The deal comes a year after Centene closed its $17.3 billion acquisition of WellCare Health Plans, another insurer focused on government-sponsored health plans. Centene is one of the largest players in that sector, with a managed care membership of 25.2 million people, with roughly half of them enrolled in Medicaid plans.

Centene said that it expects the Magellan deal to bring in 5.5 million members on government-sponsored plans, 2 million members of Magellan’s pharmacy benefit manager plans, and a behavioral health platform with 41 million members, among other businesses.

“This acquisition accelerates our diversification strategy and enhances our ability to build next generation capabilities in our specialty care business by leveraging our scale and investments in technology,” said Centene CEO Michael Neidorff in a statement.

In an interview with Barron’s on Monday morning, Neidorff said that he chiefly wanted Centene to have access to Magellan’s behavioral-health network, which contracts with states, employers, and other insurers to offer various behavioral health care services.

Behavioral health is probably the most underserved area,” Neidorff said. “This gives us access to a very broad network… It gives them access to our technology.”

Neidorff said that Magellan will be treated as an independent company within Centene, and that outside clients will have equal access to its behavioral-health product.

“If you have a newly diagnosed diabetic, after they see their endocrinologist, they should go see a psychologist to help them deal with it,” Neidorff said. “You end up with better compliance and a healthier situation.”

Neidorff said that he expects the deal to close in the second half of the year.

On an analyst call Monday, Neidorff said that regulatory approval for the deal wouldn’t pose a major challenge. “It’s complex, but it’s something we’re very used to. We’ve had some that are far more complex,” Neidorff said. “I don’t anticipate any divestitures.”

Magellan recently sold off its Magellan Complete Care business, which offers Medicaid and Medicare plans in certain states, to Molina Healthcare (MOH) for $820 million. Molina Healthcare announced Monday that the transaction closed last Thursday.

In the interview with Barron’s, Neidorff said that the sale of that business was necessary to allow regulatory clearance of the deal.

The immediate reaction to the deal from Wall Street analysts appears to be positive. In a note out early Monday, Cantor Fitzgerald analyst Steven Halper said the transaction looked good for Centene.

“We believe [Magellan Health] is a solid acquisition with modest near term accretion,” Halper wrote. “The company’s leverage ratios will certainly increase again, but given a relatively low cost of capital, the company should be able to drive incremental returns.”

Shares of Centene were down 1.8% over the past 12 months, as of Friday’s close. The stock trades at 11.4 times expected earnings over the next 12 months, according to FactSet, below its five-year average of 14 times earnings. Of the twenty-one analysts who cover the stock tracked by FactSet, 19 rate it a Buy or Overweight, while two rate it a Hold.

Clipped from: https://www.barrons.com/articles/centene-is-climbing-on-its-plans-to-buy-magellan-health-for-2-2-billion-51609771065

 
 

Posted on

Data Set Review- 2020 MACStats Data Book

Summary

While MACPA puts out a Medicaid and CHIP data book each year, this one is especially important because it is the first one to use the T-MSIS data. If you watch Macpac.gov throughout the year, you will have seen much of the components of this compilation.

What’s in it

166 pages of charts and key statistics about all aspects of the Medicaid and CHIP programs, including data on:

  • Enrollment (including demographics trends)
  • Spending (health services and administrative)
  • Eligibility levels by state
  • Utilization

A detailed explanation of methodology used by the research team, including specifics on:

  • The use of the T-MSIS data
  • Adjustments for spending data
  • A section on understanding managed care enrollment and spending data

Data sources included

National Health Interview Survey (NHIS)

The National Health Interview Survey (NHIS) has monitored the health of the nation since 1957. NHIS data on a broad range of health topics are collected through personal household interviews. Survey results have been instrumental in providing data to track health status, health care access, and progress toward achieving national health objectives.

https://www.cdc.gov/nchs/nhis/index.htmv

The Medical Expenditure Panel Survey (MEPS)

The Medical Expenditure Panel Survey (MEPS) is a set of large-scale surveys of families and individuals, their medical providers, and employers across the United States. MEPS is the most complete source of data on the cost and use of health care and health insurance coverage.

https://meps.ahrq.gov/mepsweb/

Transformed Medicaid Statistical Information System (T-MSIS)

The T-MSIS data set contains:

  • Enhanced information about beneficiary eligibility
  • Beneficiary and provider enrollment
  • Service utilization
  • Claims and managed care data
  • Expenditure data for Medicaid and CHIP
https://www.medicaid.gov/medicaid/data-systems/macbis/transformed-medicaid-statistical-information-system-t-msis/index.html

Key implications of this data set

The trends section allows for some macro observations:

  1. The percent of Aged, blind or disabled members of the program was 28% in 1975. In 2018 it was 18%- giving credibility to the argument that the Medicaid program has experienced significant mission drift over the past 40 years or so.
  2. The financial burden of Medicaid on states has doubled in the past twenty years, despite unprecedented levels of federal funding under the Affordable Care Act enhanced reimbursement for Medicaid expansion. In 1992, states spent 10% of their own money on Medicaid (as a percent of their entire state budget). In other words, 1 out of every 10 state dollars went to Medicaid. In 2018, it was 20%. Meaning 1 out of every 5 state dollars now must be spent on Medicaid.
  3. While trending data is not provided, it is interesting to see the percentages of Medicaid funds spent by benefit type. In descending order:
    1. Fee for service / direct payments
      1. Facilities – 22.5%
        1. Hospitals (13%)
        2. LTSS (“nursing homes”)- Institutional (9.5%)
        3. Clinics and health centers (2%)
      2. Providers – 14%
        1. Physicians (1.3%)
        2. Dentists (0.007%)
        3. Other practitioners (0.003%)
        4. LTSS- Home and Community Based (13%)
      3. Other acute services (7%)
      4. Drugs (0.008%)
    2. Managed Care – 50%
    3. Medicare Premiums – 3%
Posted on

Georgia is not reporting adequate Medicaid, PeachCare data

MM Curator summary- Georgia has gone from reporting 75% of CMS program measures to only 25%.

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

Clipped from: https://www.albanyherald.com/news/georgia-is-not-reporting-adequate-medicaid-peachcare-data/article_6122e664-4851-11eb-b483-7feaf358cb7c.html

 

ATLANTA — Nine years ago, Georgia reported ample data to the feds on the health care quality of its Medicaid and PeachCare programs.

In fact, a federal report at that time praised Georgia’s “proactive role in designing its data systems to support quality measurement.”

For seven more years, Georgia continued to be near the top of the data-reporting charts for what’s called the Core Set. It consistently submitted information about how its Medicaid program and its children’s health insurance, or CHIP program (known as PeachCare in Georgia), were delivering care.

No matter how well or poorly the state performed during those years, it submitted the data under the voluntary set-up.

But according to a Georgia Health News analysis, for the last two years, Georgia reported only a fraction of the information the federal Core Set requested.

Among the items not reported are rates of timely post-natal care, blood-sugar testing rates for diabetes, rates of patients using opioids at high doses, rates of hypertension control, and most mental health measures.

With 59 metrics, the Core Set aims to help states “monitor and improve the quality of health care” for Medicaid and CHIP plans, according to a 2018 press release from Seema Verma, administrator of the federal Centers for Medicare & Medicaid Services.

The Core Set is part of a push to improve transparency and accountability for states’ health insurance programs.

Medicaid and PeachCare cover about 2 million Georgians, mostly children. Those kids and some adults are part of a Georgia Families program that has been served by four insurance companies – Amerigroup, CareSource, Peach State and WellCare – which the government pays a total of $4 billion annually.

In 2011, the first year of the Core Set program, Georgia submitted the most performance measures of any state, 18 out of 24 requested.

For the latest data submission, GHN found that the state reported only eight of the 33 performance measures requested for adult measures, and just 13 of the 25 children’s measures.

When asked about the change in approach to reporting, Georgia’s Department of Community Health said the federal methodology was not sound because each state’s reporting method could vary.

States may use different methods in preparing the data, a weakness that the Core Set’s own documents acknowledge.

“In 2018, DCH reviewed the existing set of measures and determined that we needed a method that would allow us to benchmark ourselves to other Medicaid plans across the nation,” DCH Press Secretary Fiona Roberts said via email. “It was imperative that the benchmark was based on measures that were uniformly defined and populated for all Medicaid plans.”

Neighboring Southeastern states such as Alabama, South Carolina and Tennessee continue to lead in reporting the Core Set, while Georgia is now at the bottom of the data charts alongside Nebraska and South Dakota.

“Not reporting [the data] publicly, to me, is kind of a red flag,” David Machledt, senior policy analyst at the National Health Law Program, which aims to increase health care access, said. “Why should that not be open to public scrutiny?

“In general, almost every other state is on a trajectory where they’re reporting more measures [to the Core Set], not fewer, over time.”

Currently, reporting the federal core set is voluntary, although reporting all children’s health measures and adult mental health measures will become mandatory in 2024.

“If there are quality metrics that aren’t being met and we as the public can look and see where Georgia is falling short, we can hold our state decision-makers accountable,” Laura Colbert, executive director of the consumer advocacy group Georgians for a Healthy Future, said. “The greater the state reports, the better.”

Erica Fener Sitkoff, executive director of Voices for Georgia’s Children, an advocacy organization, said Medicaid and PeachCare cover half the children in the state.

“There needs to be some public accountability for the outcomes of those programs so that advocates, parents, and health care providers have visibility into how well they’re operating and can advocate for change,” Sitkoff said.

Jesse Weathington, executive director of the Georgia Quality Healthcare Association, an industry trade group, said that the four managed care companies “report reams of data on our performance to DCH on a consistent basis.”

Aside from the Core Set, DCH continues to publish performance data on its website each year, but the information is difficult to find. This year’s annual report on each of the four managed care companies included only 20 health indicators, compared to last year’s 49. These annual charts allow policymakers to view how each of the four companies delivered health care.

“For the 2019 reporting period, we reported on 20 measures total, 17 of which were Core Set measures,” Roberts said. “We are able to compare our performance on these measures to nationally recognized benchmarks and appropriately align them with internal performance efforts.”

The 2020 report omitted key data on lead exposure screening for children, opioid use, post-partum care, eye exams for diabetics, and hypertension control rates, among other indicators. Prior annual reports included easy-to-use comparative tables with star ratings based on national benchmarks for each of these health metrics.

This year the only way to find most of the data is by searching five different lengthy PDFs, found two-thirds of the way down the DCH’s Medicaid Quality webpage, and then compiling the data.

“Shining a light on where the program is meeting the mark and where it’s fallen short and still needs some improvement would actually be important for helping folks understand why the Medicaid program needs to exist,” said Colbert.

Georgia has cut from nine to three the number of maternal health care indicators it publishes in its internal Medicaid quality reports. Medicaid covers about half of births in Georgia, a state with a well-known maternal mortality crisis.

Georgia changed its approach to reporting Medicaid quality data within its own documents and to the federal government two years ago. Georgia’s most recent annual state reports published information on only three maternal health indicators:

♦ Timeliness of prenatal care;

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♦ Percentage of infants with low birthweight;

♦ Timeliness of post-natal care.

♦ The first two measures are featured in the state’s annual reports, but this year, for the first time, finding information about timeliness of post-natal care requires digging through five separate PDFs.

Missing entirely from the most recent annual reports are indicators the state formerly reported on, such as:

♦ Caesarean and elective delivery rates;

♦ Rates of mental health evaluation for pregnant women;

♦ Use of steroids during pregnancy;

♦ Frequency of post-partum care.

“These indicators that are no longer being publicly made available are really good at helping us figure out how we got there,” said Amber Mack, a research and policy analyst at Healthy Mothers, Healthy Babies Coalition of Georgia, referring to the state’s maternal mortality crisis.

Earlier this year, the state approved extending Medicaid coverage for low-income new mothers from two to six months after delivery.

“How are we going to track and see if timeliness of post-partum care has improved … especially compared to other states?” Mack said.

The maternal health measures Georgia does report show that the insurance companies delivering care to Medicaid and PeachCare members are behind national quality benchmarks for maternal care. The companies’ performance on timeliness of prenatal care ranks in the 49th percentile or below, according to a national health care quality measure the state uses.

The numbers the state reports to the federal Core Set also reflect a downward trend. The most recent report to the federal government stated that 67 percent of Georgia Medicaid members were getting timely prenatal care, in contrast to the 81 percent reported four years ago.

Georgia’s rates of low-birthweight deliveries appear to be rising, according to an analysis of the state’s data. The latest state data show the weighted average for the four companies at 9.45 percent, compared to 8.74 percent two years ago.

Only about two-thirds of Georgia mothers on Medicaid are getting timely post-natal care. For the first time this year, data on post-partum care was not included in the state annual report.

Asked why Georgia reported only two maternal health measures to the latest federal Core Set, Roberts said the agency is prioritizing prenatal care, which “provides a sizable opportunity to improve care for both the mother and the infant.”

“It is our hope that these upstream efforts will help to reduce the percentage of live births that weighed less than 2,500 grams [roughly 5 pounds 8 ounces],” Roberts said in her email.

Georgia has cut back on mental health reporting within its state reports. Georgia’s Core Set data left out at least 10 other mental health measures that neighboring states reported. The reduction in reporting is concerning because the state faces “a behavioral crisis for our children,” said Sitkoff of Voices for Georgia’s Children.

Alabama, Florida, Tennessee, South Carolina and North Carolina reported almost all mental health measures to the latest data set, while Georgia reported only on depression screening.

Georgia’s Core Set report did not include data about Medicaid and CHIP that most other states’ reports did, such as:

— Antidepressant medication management;

— Whether adults and children seen at hospitals for substance abuse or mental illness received timely follow-up;

— How many children are prescribed multiple antipsychotics at the same time;

— How many children get treatments such as counseling for behavioral health issues when they are also prescribed an antipsychotic drug;

— Opioid use rates.

In the mental health category, Georgia’s latest state and federal annual reports included data only on screening for depression in adults and children. Detailed mental health performance data is available on the DCH website, but it is split across five separate PDFs, in contrast to prior years. These separate reports lack national benchmarks.

Finding information about how state insurance plans provide care to people with diabetes is also more difficult this year. Georgia reported only one of six requested diabetes or weight-related measures to the federal Core Set.

The state’s annual reports also cut from 12 to two the diabetes health measures it presented. Though the additional information is available this year, it is difficult to find and lacks national benchmarks, in contrast with past reports.

The state did not report information to the feds about rates of blood-sugar testing this year, although last year’s report showed a testing rate of 66.6 percent, third-lowest in the nation.