White collar criminals at CareSource skip jail

While Raleigh Trammell is on house arrest- awaiting trial for allegedly stealing a few hundred thousand dollars from federal and state funds for the poor- Pam Morris, the grossly paid CEO of a company that ONLY has government as a client- gets to pay a $26 million dollar fine and continue on like nothing happened. You read about this travesty of justice first here: http://esrati.com/whos-the-criminal-sclc-montgomery-county-caresource/4325/

From the Dayton Business Journal:

CareSource, the Dayton-area’s third-largest company, will pay a $26 million fine to the federal and state government. The agreement, announced Tuesday, stems from allegations that CareSource collected Medicaid payments for assessments and case managements it failed to provide, according to a news release from the U.S. Justice Department.

The Justice Department alleges that between 2001 and 2006 CareSource received millions of dollars in Medicaid funds that it was not entitled.

The company did not provide required screening, assessment and case management for adults and children with special health care needs, according to the release.

Further, it alleges CareSource submitted false data to Ohio.

“Cash-strapped Medicaid programs, such as Ohio’s, can ill afford conduct such as this, designed to improve this company’s bottom line at the expense of a program benefitting the poor and disabled,” said Tony West, assistant attorney general for the civil division.

Despite making payment, CareSource denies any wrongdoing.

“The Department of Justice has made several allegations, all of which we disputed,” said Pamela Morris, president and CEO of CareSource, in a statement. “In the end, we chose to reach a financial settlement, bringing the matter to a close, and continuing to focus on our mission of making a difference in the lives of underserved people by improving their health care.”

Morris further said the organization is strong, that health and medical services to members will not be affected and payments to physicians, hospitals and other providers will continue as usual.

This settlement also resolves a whistleblower action filed by two former CareSource employees, Laura Rupert and Robin Herzog. They filed a suit in the Southern District of Ohio on behalf of the United States when they became aware of CareSource’s practices. The whistleblower provisions allow people with knowledge of fraud to file suit on behalf of the United States and share in any recovery. As part of this settlement, Rupert and Herzog will receive a share of the federal portion of the settlement totaling approximately $3.1 million.

CareSource, a nonprofit health plan provider, serves more than 862,000 Medicaid and Medicare Advantage consumers in Ohio and Michigan.

With $2.4 billion in revenue last year, it ranks as the Dayton region’s third-largest company.

The fact that CareSource has $26 million that it can pay a fine with- should be an indication that this organization has been doing quite well rationing health care instead of providing it.
We don’t pay the president $3 million a year- why are we paying this to criminals?
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8 Responses

  1. Gary February 1, 2011 / 7:58 pm
    UNBELIEVABLE! This news sure will help Dayton’s economy — figures, top pay, top swindlers!
    And to think I wanted a job there!  Hell no, not anymore!

    Brilliant or Bozo? Thumb up 5 Thumb down 4

  2. djw February 1, 2011 / 10:14 pm
    Caresource is pretty much “exhibit A” for why we get so little bang for the buck on health care expenditure vs. outcomes in this country. (And, of course, as far as middlemen who contribute no signifigant value, they’re nowhere near as bad as the insurance companies).

    Well-loved. Brilliant: Thumb up 8 Thumb down 1

  3. Greg Hunter February 2, 2011 / 11:33 am
    I would also point out that this type of extortion by the justice department is doing a great dis service to the American people by not fully prosecuting the criminals.  It just becomes a part of the cost of doing business in corrupt America.  The same kind of “deal” was cut with Bank of America and Anthony Mozilo over the wrong doings in the mortgage market.  In BAC case they did it “to avoid the expense and distraction associated with litigating the case.” Sound familiar?
    Mozilo made 250 million in stock options alone and paid 67.5 million in a fine.

    What happened to justice in America?  Jail is for the poor it would seem.  Obama and Eric “place” Holder are tools of the corrupt people that supposedly generate jobs for Americans.   Keep up the good work Caresource!

    Well-loved. Brilliant: Thumb up 11 Thumb down 2

  4. Gary February 2, 2011 / 11:44 am
    @ djw – as far as middlemen who contribute no signifigant value   I am sure some people who are really sick get help from CareSource and other agencies-  and/or meds from Medicaid, free of charge- but what about this fraudulant company- CareSource- seems to only care about making their big bucks and salaries!
    The two whistleblowers are now rich!  And CareSource is filthy rich- 2.4 billion dollars rich!
    Further- the 26 million dollar fine will only go back to the Feds, who are not using it to eradicate the poverty and famine in the world!
    If more people would revolt, like shows such as Live Aid and Farm Aid- we might just be able to remedy all poverty in the world- it seems so simple to me!

    Brilliant or Bozo? Thumb up 4 Thumb down 4

  5. Bob VL February 2, 2011 / 1:35 pm
    The Justice Department … alleges …
    “The Justice Department alleges that between 2001 and 2006 CareSource received millions of dollars in Medicaid funds that it was not entitled”

    Care Source Claims no-wrongdoing???
    Care Source pays a $ 26 Million Fine .

    Greg Hunter claims: I would also point out that this type of extortion by the justice department is doing a great dis service to the American people by not fully prosecuting the criminals.

    WHAT IS WRONG WITH THIS PICTURE ?

    Brilliant or Bozo? Thumb up 3 Thumb down 1

  6. Gary February 2, 2011 / 1:39 pm
    The Justice Department must have gotten their cut, too!

    Brilliant or Bozo? Thumb up 2 Thumb down 2

  7. David Esrati February 2, 2011 / 8:27 pm

    Please note- when CareSource “pays a fine” they do it with our tax dollars- since they don’t get paid by anyone other than government. It’s time to actually put people in jail- or claw some back.

    Kentucky is passing a bill for greater scrutiny on these tax mills:

    http://www.kentucky.com/2011/02/02/1619656/bill-calls-for-more-scrutiny-of.html

    It’s time to hold someone accountable- not just play games with money

    Brilliant or Bozo? Thumb up 7 Thumb down 2

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