Health insurer Amerigroup Corp will pay $225
million to resolve allegations that it defrauded the state of Illinois Medicaid
program, the Justice Department and Illinois
attorney general said on Thursday. The settlement with Amerigroup replaces the
federal court judgement, but still remains the largest award in a federal
health care fraud case in Illinois,
according to a news release from the US Attorney’s office. Medicaid is the
state-federal health plan for the poor.
“A settlement of this magnitude sends the
clear message that this office takes health care fraud very seriously,” said Patrick
Fitzgerald, the U.S.
attorney for the northern district of Illinois, in a statement, according to
Reuters. “This case also illustrated the perils a defendant faces in taking a
case such as this to trial.”
The reason behind this decision was the
need to lessen legal and financial uncertainty for the company.
As part of the settlement, Amerigroup has
agreed to enter into a “corporate integrity agreement” with the U.S. Health and
Human Services Department’s Office of Inspector General. Amerigroup no longer
operates in Illinois, but it operates plans in
other states, including Virginia,
with a combined enrollment of almost 1.7 million members. This agreement
applies to all states in which the company does business and it requires it to
adopt policies, procedures and a code of conduct which should be designed to
prevent discrimination in its marketing and enrolment practices.
© 2007 - 2009 - eFluxMedia