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Former KY lawmaker pleads guilty to federal fraud charge

MM Curator summary

[MM Curator Summary]: A pharmacy scheme run in locations owned by a former legislator stole $2.7M from 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.

 
 

 
 

A former Kentucky legislator pleaded guilty in federal court Wednesday to health care fraud and a financial crime.

Robert Goforth, 46, admitted that a pharmacy he owned in Clay County billed insurance programs, including Medicare and Medicaid, for prescriptions that customers didn’t pick up.

The medication could then be put back on the shelf and sold again.

“I knew that it was wrong and I’m here to own up to that and take responsibility for my actions,” Goforth said in a hearing before U.S. District Judge Robert E. Wier in London.

Goforth agreed as part of his plea not to appeal any sentence up to three years and one month in prison.

Goforth pleaded guilty to one charge of health care fraud and one charge related to money laundering, acknowledging he wrote a $17,000 check from an account that contained at least some money derived from the fraud.

Each charge carries a maximum sentence of 10 years in prison. Goforth’s sentence will likely be less than that under advisory guidelines.

Federal prosecutors charged Goforth by way of a document called an information. That is a way to file a charge without presenting the case to a grand jury.

Goforth said at the hearing a state pharmacy investigator told him in 2015 about suspected fraud by an employee involving prescriptions not being picked up.

The employee received a percentage of the store’s profits, Goforth said.

Goforth said the normal procedure if a customer didn’t pick up a prescription would be to credit the charge back to the insurance provider.

However, after looking into the situation and seeing discrepancies, he ignored the problem and allowed the improper billing to continue for several months, Goforth said.

“I had a responsibility to stop it and I did not do that,” he said in court.

Goforth conceded in his plea agreement that about $2.7 in excessive billing occurred at the Manchester pharmacy from when he started it until he sold it in September 2016. Of that, about $1.35 million happened after he was put on notice about the problem.

Most of his business came from Medicare and Medicaid, meaning that after he was notified of the fraud, there was $945,000 in false billing to the government programs, according to the plea agreement.

The total restitution in the case is $2.7 million.

Wier could have ordered Goforth detained until sentencing, but allowed him to remain out of jail. Prosecutors had agreed to recommend allowing him to remain free.

Wier scheduled sentencing in September.

Goforth, a Republican, represented Jackson County and parts of Laurel and Madison counties in the state House before resigning in August 2021 as he faced a charge in state court of strangling his wife during a domestic dispute in April 2020.

That charge is pending.

Goforth also ran unsuccessfully for the GOP nomination for governor in 2019.

This story was originally published May 25, 2022 4:36 PM.

 
 

Clipped from: https://www.kentucky.com/news/local/crime/article261794992Rober.html

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RI cancels bid process for $7 billion Medicaid contract after insurer snafus

[MM Curator Summary]: RI will give incumbents who would have been disqualified if procurement rules were followed a do-over.

 
 

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.

 
 

PROVIDENCE, R.I. (WPRI) – Rhode Island is starting over on a bidding process for the state’s huge Medicaid managed care contract, worth $7 billion over five years, effectively reopening the door for disqualified insurance companies to try again.

The R.I. Department of Administration confirmed the decision shortly after 4 p.m. Friday, citing policy changes made by federal regulators related to the Medicaid program – meaning the contract language would need to be updated and the process would have to start over. 

But the decision also comes just days after Target 12 first requested information about Blue Cross Blue Shield of Rhode Island’s bid, which had been submitted with a blank CD and no paper copy, raising questions about whether Rhode Island’s largest insurance company would be disqualified. 

Blue Cross Blue Shield refused to answer questions about the issue, and the state didn’t respond to multiple requests for comment on the matter before announcing the process would start over.

A document obtained by Target 12 shows state officials discovered the problem with the Blue Cross CD on March 8, and leaders at the Executive Office of Health and Human Services sought to scrap the entire bidding process soon after. But purchasing officials at the Department of Administration blocked the health agency from doing that, and in April repeatedly told Medicaid staffers to pick up the bid documents and move forward.

On April 27, Health and Human Services leaders cited the revised federal regulations as a new reason to throw out the original bids, and purchasing officials signed off on the decision Friday.

It’s unclear when Blue Cross learned about its disqualification. “We cannot discuss our bid at this time as the state is still in the midst of its procurement process,” Melanie Coon, a spokesperson for the insurer, told Target 12 earlier this week. She directed a follow-up question to the state.

This isn’t the first time there’s been an issue with the Medicaid bidding process, which will eventually turn into the most lucrative state contract awarded in Rhode Island’s state government.

As Target 12 first reported in March, Tufts Health Plan submitted its bid for the contract two minutes after the deadline, effectively disqualifying them from the process. Tufts blamed traffic ahead of a snowstorm.

The elimination of both Tufts and Blue Cross could have benefited the four remaining companies who apparently submitted their bids correctly: MolinaHealthcare of Rhode Island Inc., Neighborhood Health Plan of Rhode Island, United Healthcare of New England, and Commonwealth Care Alliance.

Under the current Medicaid managed care contact, which will expire a year from July, Neighborhood administers coverage for about 174,000 patients, while United Healthcare has 97,000 patients and Tufts has 17,000. The three companies together handle insurance for about 85% of all Medicaid recipients in Rhode Island. (The rest are not in managed care programs.)

TARGET 12: How 2 minutes may cost RI health insurer hundreds of millions

Eli Sherman (esherman@wpri.com) is a Target 12 investigative reporter for 12 News. Connect with him on Twitter and on Facebook.

Clipped from: https://www.wpri.com/target-12/ri-cancels-bid-process-for-7-billion-medicaid-contract-after-insurer-snafus/

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Biden set to extend federal COVID-19 emergency: What it means for Ohio

[MM Curator Summary]: Biden will likely extend the PHE again to give Dems cover for upcoming at-risk elections.

 
 

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.

 
 

 
 

President Joe Biden’s administration is set to extend the COVID-19 health emergency declaration beyond July 15, which is when it is currently set to expire.

The extension from the U.S. Department of Health and Human Services means that hundreds of thousands of Ohioans at risk of losing health coverage and other benefits will continue to keep them for now.

Earlier in the year, many had anticipated that the pubic health emergency would no longer be extended as the nation settled down from the omicron wave and COVID-19 restrictions were loosened.

The likely extension, reported by Bloomberg, may not be the last 90-day extension and could continue, depending on the status of the COVID-19 pandemic and the political climate. Cases are significantly lower than they were this past winter, but are on the rise again.

Ending the public health emergency is more than just saying the U.S. has moved on from the COVID-19 pandemic. Its declaration allows for special provisions to help Ohioans affected by the virus and has very real-life consequences.

Ohio impact

With the extension, any vaccines or COVID-19 treatments under emergency use authorization can continue to be used. That currently includes vaccines for children between 5 and 15 years old. As of May 12, only 30% of Ohioans ages 19 and younger had been vaccinated, per state data.

The extension also continues to allow for health coverage flexibilities around COVID-19 tests, treatment and the use of telehealth. 

At least 400,000 Ohioans relying on Medicaid — government-paid health insurance for low-income or disabled people — could have lost coverage had the Public Health Emergency not been extended.

Instead, that process will play out later, and it’s one that can be very messy and difficult in determining who is not eligible and lose benefits. Mistakes could happen, where people who are still eligible (or still low-income) might accidentally be removed. 

That will pose headaches for the Ohio Department of Medicaid, which is trying to launch its revamped system on time. It recently pushed most of the launch back to avoid conflicting with the eligibility checks, but it now may need to readjust the timeline again.

The public health emergency prevented those on Medicaid from being disenrolled because Ohio saw a big boost in federal money to help cover them. The state received around $300 million every three months in federal money. That boost will go away when the declaration ends.

The declaration continuing also means temporary food stamp increases will remain in place at a time when inflation is affecting Ohioans. 

Titus Wu is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.

Clipped from: https://www.beaconjournal.com/story/news/politics/government/2022/05/17/biden-extends-federal-covid-19-emergency-what-means-ohio-medicaid-food-stamps-snap-ohio-reforms/9768602002/

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New Washington Medicaid director will ‘redetermine’ eligibility after pandemic emergency

[MM Curator Summary]: Congratulations to Dr. Fotinos who became the new WA Medicaid director.

 
 

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.

 
 

 
 

Lara Geyrozaga, a nurse with Project Vision Hawaii, administers a COVID-19 vaccine dose to Eileen Pelep at a vaccination clinic in Honolulu, on Wednesday, July 14, 2021. 

Jennifer Sinco Kelleher / AP

(The Center Square) – Dr. Charissa Fotinos has been appointed Washington state Medicaid director. One of her top priorities will be to “redetermine” Medicaid eligibility for Medicaid recipients once the public health emergency created by the pandemic comes to an end.

Washington Health Care Authority Director Sue Birch announced the selection in a statement praising Fotios’s qualifications. “Charissa is uniquely positioned for this new position, with her years of clinical, public health, and leadership experience,” Birch said in a statement.

Fotinos had been the program’s interim director for 10 months.

More than 2 million Washingtonians receive Medicaid benefits, which are called Apple Health in the state. That number has grown by more than 361,000 since March 2000.

An HCA spokesperson declined to estimate the number of Washingtonians who may lose Medicaid eligibility after the pandemic emergency, but said the agency will work to ensure a smooth transition to qualified health plans through the state Health Benefit Exchange.

Fotinos is a family practitioner whose specialty is addiction medicine. She previously served Public Health-Seattle & King County as chief medical officer and has been a faculty member at the Providence Family Medicine Residency Program.

While serving as Medicaid director, Fotinos will continue in her current position as behavioral health medical director for the HCA. The rationale for this dual role is to ensure an integrated approach to physical and behavioral health in the Medicaid program, a spokesperson for the HCA told The Center Square.

Medicaid is a federal and state program established in 1965 to fund medical benefits, including nursing home care, for people with low incomes. Approximately 58 million people in the United States were enrolled in Medicaid in 2020 according to the U.S. Census Bureau.

Clipped from: https://www.kpvi.com/news/national_news/new-washington-medicaid-director-will-redetermine-eligibility-after-pandemic-emergency/article_64441bc9-044e-5beb-a029-6703b192a9ce.html

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Pritzker signs bill that helps Medicaid patients

[MM Curator Summary]: Headline should read: “Pritzker signs bill that keeps $3.9B in hospital Medicaid payments flowing.” Not exactly the same thing as “helps Medicaid patients.”

 
 

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.

 
 

 
 

Gov Pritzker signs Hospital Assessment Program(WIFR Newsroom)

CHICAGO, Ill. (WIFR) – Governor JB Pritzker signed a bill Tuesday extending and expanding the Hospital Assessment Program in Illinois.

The current program, which signed into law in 2020, runs through the end of 2022. It brought additional funding and improved Medicaid responsiveness in areas of the state most affected by COVID-19.

This bill will help establish refined payment structures for each hospital class and maintain the existing assessment tax structure. The renewed Hospital Assessment program waives $240 million in the assessment imposed on hospitals. It also aligns hospitals with payment and Medicaid needs, as well as offering tax exemptions and waivers to help hospitals recover from the effects of COVID-19.

Pritzker commented Tuesday saying “The Hospital Assessment program was an important support to hospital’s critically in need of additional funding during the worst of the COVID-19 pandemic,”. He’s also optimistic about the impact of the bill, saying “This extension continues to support them on the path to recovery and offers expanded services and Medicaid support to more hospitals to ensure people across the state have access to affordable, high-quality health care.”

House Majority Leader Greg Harris says “The Hospital Assessment program brings an additional $3.9 billion dollars into Illinois’ Medicaid program”.

 
 

Clipped from: https://www.wifr.com/2022/05/17/pritzker-signs-bill-that-helps-medicaid-patients/

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UnitedHealthcare Selected by State of Missouri to Serve Medicaid Beneficiaries

[MM Curator Summary]: United won its MO renewal.

 
 

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.

 
 

  • Missourians will continue to have access to UnitedHealthcare’s comprehensive care and preventive health and wellness programs for Medicaid

JEFFERSON CITY, Mo.: The state of Missouri has selected UnitedHealthcare Community Plan of Missouri as one of three managed care organizations to administer its MO HealthNet Managed Care Program for Medicaid members in Temporary Assistance for Needy Families (TANF) and the Children’s Health Insurance Program (CHIP).

UnitedHealthcare is committed to working closely with the Missouri Department of Social Services and its MO HealthNet Division, which administer the state’s Medicaid program, toward the shared goal of improving the overall health and well-being of members. Through UnitedHealthcare’s approach, Missouri Medicaid members will benefit from a value-based, whole-person and integrated care model that focuses on the unique health needs of members and the communities UnitedHealthcare is dedicated to serving.

“We have partnered with the state of Missouri for the last five years and are honored to have the opportunity to continue building a strong Medicaid program that offers innovative programs and solutions for individuals and families,” said Jamie Bruce, chief executive officer, UnitedHealthcare Community Plan of Missouri. “We are deeply committed to Missouri and are privileged to provide access to high-quality care that has a positive impact for our members’ health and the communities we serve.”

UnitedHealthcare Community Plan of Missouri will offer health benefits for a portion of the nearly 1 million adults and children who qualify for the general MO HealthNet Managed Care Program in Missouri. Benefits will include access to UnitedHealthcare’s comprehensive and preventive care including an integrated network of behavioral health and physical health providers, essential community providers, and long-term care providers beginning July 1, 2022.


 
 

Clipped from: https://www.unitedhealthgroup.com/newsroom/posts/2022/2022-05-12-uhc-selected-by-mo-to-serve-ma-beneficiaries.html

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Milliman’s Jennifer Gerstorff appointed to Medicaid and CHIP Payment and Access Commission (MACPAC)

[MM Curator Summary]: MACPAC gains one of the brightest minds in the Medicaid space.

 
 

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.

 
 

SEATTLE, May 10, 2022 /PRNewswire/ — Milliman, Inc., a premier global consulting and actuarial firm, is excited to share that Jennifer L. Gerstorff, FSA MAAA, has been appointed to the Medicaid and CHIP Payment and Access Commission (MACPAC), a non-partisan legislative branch agency that advises Congress on issues affecting Medicaid and the State Children’s Health Insurance Program.

Ms. Gerstorff is a principal and consulting actuary of Milliman.  She joined the firm in 2006 and has spent her career consulting to state Medicaid agencies, Medicaid managed care organizations, and safety net healthcare providers, in nearly half of U.S. states and territories.  In addition to her consulting work, she has actively volunteered with the Society of Actuaries (SOA) and American Academy of Actuaries (AAA), having served as a member of the SOA Health Section Council, leader of the SOA’s Medicaid public interest group, and as a member of the AAA’s Medicaid and health equity workgroups.  

“We are very excited to recognize Jenny’s appointment to MACPAC,” said Thomas D. Snook, Milliman’s Global Health Practice Director.  “Programs like Medicaid and CHIP form the bedrock of America’s healthcare safety net.  Jenny’s broad experience working with key stakeholders, including serving as consulting actuary for several state Medicaid agencies and collaborating with providers and managed care plans, positions her as a credible voice to advise decisionmakers about the future of these important programs.”  

Ms. Gerstorff is a fellow in the Society of Actuaries and a member of the American Academy of Actuaries.  She received her Bachelor’s degree (summa cum laude) in Applied Mathematics from Columbus State University.  

About Milliman

Milliman is among the world’s largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit milliman.com.  

 
 

SOURCE Milliman, Inc.

 
 

Clipped from: https://www.goskagit.com/millimans-jennifer-gerstorff-appointed-to-medicaid-and-chip-payment-and-access-commission-macpac/article_b92a2d44-a8b6-5b95-9b94-4fc05789d419.html

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MO- Centene Subsidiary Selected to Continue Serving Missouri’s Medicaid Managed Care Members and Wins Single Source Foster Care Specialty Contract

[MM Curator Summary]: Centene will continue as the single foster care managed care vendor in Missouri.

 
 

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.

 
 

ST. LOUIS, May 6, 2022 /PRNewswire/ — Centene Corporation (NYSE: CNC) announced today its Missouri subsidiary, Home State Health, has been awarded the MO HealthNet Managed Care General Plan and Specialty Plan. Under the General Plan, Home State will continue serving multiple MO HealthNet programs including Children’s Health Insurance (CHIP) members and the state’s newly implemented Medicaid expansion population, across all regions of Missouri.

As the sole provider of the Specialty Plan, Home State will serve approximately 40,000 foster children and children receiving adoption subsidy assistance. The Specialty Plan combines health services into a single, specialized health plan for children in the custody of the Missouri Department of Social Services (DSS) and children receiving adoption subsidy assistance. The plan establishes a trauma-informed, comprehensive, and integrated behavioral health and physical health delivery system. The contract is for one year with options for four renewals. Centene Corporation currently provides comprehensive healthcare services and programs to children served in the child welfare system in 19 states, with single source statewide contracts in four states.

“We look forward to the next chapter of our strong relationship with the state, our network of providers and community partners as we continue to deliver member-focused care and improve health outcomes,” said Brent Layton, Centene’s President and Chief Operating Officer. “We are honored to be selected to serve as the Specialty Plan for children involved with foster care. We look forward to bringing our innovative care management programs that address the whole health of these children in Missouri.”

More than 975,000 Missourians receive their healthcare through the state’s Medicaid managed care program (MO HealthNet), which provides access to physical health, behavioral health, pharmacy, hospital, and other services. Today, Home State Health serves more than 300,000 Medicaid enrollees and partners with 25,000 healthcare providers statewide.

Home State Health has served the Medicaid population in partnership with MO HealthNet since 2012. The organization also focuses on under-insured and uninsured individuals through its federal insurance marketplace plan, Ambetter. Additionally, Home State Health provides insurance for the Medicare population through its Medicare Advantage plan, WellCare.

 
 

Clipped from: https://investors.centene.com/news-events/press-releases/detail/1031/centene-subsidiary-selected-to-continue-serving-missouris

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Report finds western Iowa agency improperly billed Medicaid for some services

[MM Curator Summary]: An Iowa referral agency double-billed the state for services over a 4 year period.

 
 

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.

 
 

A special investigation by the state auditor’s office has found a non-profit in western Iowa was double-billing for some services.

Iowa Department of Public Health officials asked for the review of a non-profit called FAMILY, Inc. It links needy residents to a variety of government services for women, children and families in Pottawattamie and Mills Counties. The review centered on the organizations’s contracts with state agencies — one for home visits with pregnant women and families with young children and the other for a program called Early Childhood Iowa.

Auditors determined that over a four-year period, FAMILY, Inc. billed Medicaid for more than 20-thousand dollars in services already covered by the contracts. State Auditor Rob Sand said in the report that due to a lack of records, it was not possible to determine if improper billing happened before July 1, 2017. According to the auditor, the Iowa Department of Public Health adopted more cross-checks last year to ensure other providers aren’t double-billing for these same services.

A spokesperson for FAMILY, Inc. was not immediately available for comment when the special investigation by the state auditor’s office was released this morning.

 
 

Clipped from: https://www.radioiowa.com/2022/05/10/report-finds-western-iowa-agency-improperly-billed-medicaid-for-some-services/

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OH- Rollout of Medicaid reforms delayed

[MM Curator Summary]: All of the OH Medicaid reforms except OH Rise are on hold while the state deals with the PHE wind-down efforts.

 
 

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.

 
 

The projected launch date of Ohio’s revamped and reformed Medicaid managed care system will still be Julyexcept this month, given a potential crisis where many may be kicked off Medicaid, the state pushed back most of the reforms to the end of this year.

“It seems like this new phased approach still allows them to move forward with everything, but in a way that is manageable…to maybe take smaller bites of the apple,” said Loren Anthes, who chairs Community Solutions’ Center for Medicaid Policy.

Medicaid, government-paid health insurance for more than 3 million low-income or disabled Ohioans, is typically the state’s largest expenditure totaling billions of dollars. The “next generation” system is the result of an extensive process that started in 2019, looking at ways to overhaul the system after years of issues and lack of reform.

According to the Ohio Department of Medicaid, one of those reforms will still be up and running in July. OhioRISE is a new coverage system to treat children with severe behavioral and mental problems so parents don’t have to give up custody.

But all the other more complicated changes, such as a single pharmacy benefit manager to prevent prescription drug “middlemen” from overcharging taxpayers, won’t happen until October at the earliest. The same applies to the two to three new health plan options entering the system: AmeriHealth Caritas, Humana, and Anthem Blue Cross and Blue Shield.

 
 

Why the delay?

The planned July launch date could coincide with the end of the federal government’s COVID-19 emergency declaration, which prevented states from kicking ineligible people off Medicaid. When that ends, almost everybody will have to go through eligibility checks – a daunting task for an understaffed system that could also leave Ohioans confused over if they still have health insurance.

Spreading the Medicaid reforms out to later in the year would prevent a disaster scenario where both the eligibility checks and the new reforms go awry at the same time, said Anthes, the Medicaid policy expert.

“It is important that the reforms and improvements embodied in the Next Generation program are not compromised with a hurried launch, or potentially confusing communications,” the Medicaid department said in a document sent to lawmakers.

Despite the later timeline, Medicaid participants still can choose to enroll into one of the new plan options now, said department spokesperson Lisa Lawless. They’ll just remain on their current health plan until the end of the year when the switch occurs.

Starting dates for the new system were pushed back before, and some lawmakers have been concerned with how long implementation has taken. But the department insists they are not rushed.

“Doing this correctly is more important than meeting an administratively imposed timeline,” it told lawmakers.

 
 

Clipped from: https://insurancenewsnet.com/oarticle/rollout-of-medicaid-reforms-delayed