This report originally appeared in the March 2009 issue of DOTmed Business News

National: ARRA Passes House, Senate
According to the White House Briefing web page, the most anticipated legislation for economic recovery, the American Recovery and Reinvestment Act of 2009, has been passed by the House and Senate. Parts of this legislation are applicable to heath care, most notably health information technology and extension of benefits to the unemployed.

In the legislation, there is a new Office of the National Coordinator for Health Information Technology (HIT) within the Department of Health and Human Services. The National Coordinator will work on the development of a nationwide health information technology infrastructure that allows for the electronic use and exchange of information while ensuring each patient's health information and electronic health record (EHR) is secure and protected. The technology should improve health care quality, reduce medical errors and advance the delivery of patient-centered medical care. The office will also provide appropriate information to help guide medical decisions at the time and place of care.

The legislation also has a reduction of COBRA premiums for eligible individuals, where an individual can pay half of the premium. An eligible individual would be one who becomes eligible for COBRA coverage between September 1, 2008, and December 31, 2009, and the COBRA continuation coverage is due to the involuntary termination of the covered employee's employment occurring during such period.

Federal: Owner of Lifecare Medical pleads guilty to Medicare Fraud
The U.S. Department of Justice (DOJ) reports that the owner and operator of HME Solutions Inc., dba Lifecare Medical, out of Miami, FL, has pled guilty to defrauding the Medicare program in connection with a $5.3 million HIV-infusion fraud scheme.

According to the press release, Harold Sio, 33, pleaded guilty to conspiracy to commit health care fraud and conspiracy to commit money laundering for acts taking place during 2004 through 2006. The other parties to the conspiracy, the DOJ said, were Juan A. Marrero and Orlando Pascual Jr., the owners of Medcore Group LLC (Medcore).

The press release says Sio's admissions in his plea include supplying pharmaceuticals to Marrero and Pascual for the purpose of committing Medicare fraud, and providing invoices that documented huge quantities of pharmaceuticals, which were received by Medcore, when in fact only small amounts were delivered. Sio also acknowledged that he accepted payment from Marrero and Pascual then returned cash to them for the purpose of the cash being used to pay patients. Marrero and Pascual pleaded guilty in January 2009 to Medicare fraud and are scheduled for sentencing on April 3, 2009. Sio is scheduled to be sentenced on March 24, 2009.

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