Mealey's Health Law - Florida Judge Finds Revised ACA Mandate Opt-Out Rule Still Requires Injunction

    MIAMI - Having Patient Protection and Affordable Care Act (ACA) contraceptive mandate challengers notify the government does not warrant a change in outcome from cases decided under the previous rule, which had them notify third-party administrators, a Florida federal judge held Oct. 28 (Ave Maria School of Law v. Sylvia Burwell, et al., No. 13-795, M.D. Fla.; 2014 U.S. Dist. LEXIS 152738).

    Mealey's Health Law - Biomet Pays $6M To Settle Bone Growth Stimulator Whistle-Blower Case

    BOSTON - Biomet Inc. and its parent company have agreed to pay $6.07 million to resolve False Claims Act allegations that Biomet paid kickbacks to health care providers to prescribe the company's bone growth stimulators, the U.S. attorney for the District of Massachusetts announced Oct. 29 (United States of America, ex rel. Yu v. Biomet, Inc., No. 09-1731, D. N.J.).

    Mealey's Health Law - Judge Allows Medicare False Claims To Continue, Dismisses Conspiracy Claim

    BOSTON - A federal judge in Massachusetts on Oct. 27 held that a plaintiff in a qui tam action alleging that a pharmaceutical manufacturer schemed to submit false claims for reimbursement to government programs, including Medicare, sufficiently pleaded facts to support his claims, except one for conspiracy (United States of America et al. ex rel. Timothy Leysock v. Forest Laboratories Inc., et al., No. 12-11354, D. Mass.; 2014 U.S. Dist. LEXIS 151685).

    Mealey's Health Law - Dialysis Center Agrees To Pay $350M To Resolve False Claims Act Suit

    DENVER - A dialysis center based in Denver has agreed to pay $350 million to resolve claims that it violated the False Claims Act by paying kickbacks to have patients referred to its clinics, the U.S. Department of Justice announced Oct. 22 (United States of America, ex rel. David Barbetta v. DaVita Inc., No. 09-cv-02175-WJM-KMT, D. Colo.).

    Mealey's Health Law - Illinois Dermatologist Found Guilty Of Defrauding Medicare Of More Than $2.6M

    CHICAGO - A jury in federal court in Illinois found a dermatologist guilty of submitting false claims for more than 800 patients resulting in $2.6 million in unnecessary payments from Medicare and other private health insurers (United States of America v. Robert Kolbusz, No. 12-cr-00782, N.D. Ill.).

    Mealey's Health Law - Jury Finds Hospital President, 3 Others Guilty In Medicare Fraud Scheme

    HOUSTON - A jury in U.S. District Court for the Southern District of Texas on Oct. 20 found that the president of the Riverside General Hospital, his son and two other individuals were guilty of being involved in a $158 million Medicare fraud scheme (United States of America v. Earnest Gibson III, et al. No. 12-cr-00600, S.D. Texas).

    Mealey's Health Law - Government Challenges Merits, Standing In Anti-Abortion Group's Mandate Case

    WASHINGTON, D.C. - An anti-abortion group and its employees lack standing and miscast the standard for review in a futile effort to save a doomed case, the government told a District of Columbia federal judge on Oct. 21 (March for Life, Jeanne F. Monahan and Bethany A. Goodman v. Sylvia M. Burwell, et al., No. 14-1149, D. D.C.).

    Mealey's Health Law - 3rd Circuit: Relator Wasn't Original Source In Drug Whistle-Blower Case

    PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Oct. 20 affirmed the dismissal with prejudice of a relator's False Claims Act (FCA) lawsuit against AstraZeneca Pharmaceuticals LP and Bristol-Myers Squibb Co., agreeing with a trial court that the whistle-blower failed to show that he was the original source of information about alleged wrongdoing (United States of America, ex rel. Karl S. Schumann, et al. v. AstraZeneca Pharmaceuticals L.P., et al., No. 13-1489, 3rd Cir.).

    Mealey's Health Law - Surgeon's Opinion Permitted In Nursing Home Neglect Lawsuit

    PITTSBURGH - Finding a treating physician's opinion to be reliable and admissible, a Pennsylvania federal judge Oct. 20 denied a nursing home's motion to exclude it in a lawsuit alleging violations of the Federal Nursing Home Reform Act (FNHRA) (Lawrence M. Clutter v. Washington County Health Center, No. 2:13-cv-00185, W.D. Pa.; 2014 U.S. Dist. LEXIS 148505).

    Mealey's Health Law - New York Cardiologist Sentenced To 3 Years In Prison, Pay $2M In Restitution

    WHITE PLAINS, N.Y. - A federal judge in New York on Oct. 16 sentenced a cardiologist to three years in prison and ordered him to pay $2 million in forfeiture and restitution for fraudulently billing Medicare and other insurance providers for services that were not medically necessary from 2007 until 2011 (United States of America v. Rohan Wijetilaka, No. 12-cr-00924, S.D. N.Y.).

    Mealey's Health Law - Florida Jury Returns Defense Verdict In Medical Malpractice Suit

    BRADENTON, Fla. - A Florida state court jury on Oct. 17 returned a unanimous defense verdict for a pediatrician in a medical malpractice case involving the death of a 15-year-old girl (Virginia Chapman, et al. v. Snehal V. Parikh, M.D., et al., No. 12CA03280, Fla. Cir., 12th Jud., Manatee Co.).

    Mealey's Health Law - High Court Lets Stand Judgment In Hidden Administrative Fee Case

    WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 20 denied review of a Sixth Circuit U.S. Court of Appeals ruling that affirmed a $6 million judgment against Blue Cross Blue Shield of Michigan (BCBSM) for breaching its fiduciary duty and engaging in self-dealing in violation of the Employee Retirement Income Security Act by collecting administrative fees that were not revealed in its administrative service contracts with the sponsor of a self-funded employee health benefit plan (Blue Cross Blue Shield of Michigan v. Hi-Lex Controls, Inc., et al., No. 14-168, U.S. Sup.).

    Mealey's Health Law - Judge Finds Disclosure Of Audit Results Not Fatal To Suit

    RENO, Nev. - A federal judge in Nevada on Oct. 16 denied a health care company's motion to dismiss a False Claims Act suit against it, ruling that the dissemination of audit results concerning its billing practices to doctors employed by the company did not constitute a public disclosure (United States, ex rel. Cecilia Guardiola v. Renown Health, et al., No. 12-cv-00295-LRH-VPC, D. Nev.; 2014 U.S. Dist. LEXIS 148227).

    Mealey's Health Law - Owners Of 2 Diagnostic Centers To Pay $2.6M To Resolve False Claims Suit

    HOUSTON - The owners of two diagnostic centers in Texas on Oct. 16 agreed to pay a combined $2.6 million to resolve claims from three whistle-blowers alleging that the owners violated the False Claims Act and Stark statute, according to filings in Texas federal court (United States, ex rel. Maribeth Holderith v. One Step Diagnostics Inc., et al., No. 12-cv-2988, S.D. Texas).

    Mealey's Health Law - Insurer Seeks Rehearing Of 3rd Circuit Ruling In Denial Of Benefits Case

    PHILADELPHIA - The Third Circuit U.S. Court of Appeals' ruling that a welfare plan administrator acted arbitrarily and capriciously in denying benefits for continued inpatient treatment for a participant who suffered from an eating disorder is contrary to the decision of the U.S. Supreme Court in Rush Prudential HMO, Inc. v. Moran, the administrator contends in its Oct. 10 petition seeking rehearing and rehearing en banc (Lisa Mirsky v. Horizon Blue Cross and Blue Shield of New Jersey, No. 13-4121, 3rd Cir.; 2014 U.S. App. LEXIS 18484).

    Mealey's Health Law - Cephalon Escapes Some Claims, Not Others In 2 False Claims Lawsuits

    PHILADELPHIA - Cephalon Inc. will continue to face some False Claims Act allegations about off-label marketing and kickbacks after a Pennsylvania federal judge on Oct. 9 issued three rulings in two cases (United States of America ex rel. Matthew Cestra, et al. v. Cephalon, Inc., et al., No. 14-1842, and United States of America ex rel. Bruce Boise, et al. v. Cephalon, Inc., No. 08-287, E.D. Pa.).

    Mealey's Health Law - Settlement Reached In Medicare, Medicaid False Claims Act Suit

    PHILADELPHIA - A nationwide nursing home company will pay $38 million to resolve allegations made in a whistle-blower qui tam action that it provided inappropriate rehabilitation therapy to elderly patients in order to increase Medicare and Medicaid billings, according to a settlement agreement announced Oct. 9 by the U.S. Department of Justice (United States ex rel. Tracy L. Lovvorn v. Extendicare Real Estate Investment Trust, No. 10-1580, E.D. Pa.).

    Mealey's Health Law - Washington High Court: Insurer Violates Mental Health Treatment Requirements

    OLYMPIA, Wash. - The Washington Supreme Court on Oct. 9 held that health insurance blanket exclusions of neurodevelopmental therapies in plaintiffs' health plans are void and unenforceable under the state's Mental Health Parity Act and neurodevelopmental therapies (NDT) mandate (O.S.T., et al. v. Regence Blueshield, No. 88940-6, Wash. Sup.; 2014 Wash. LEXIS 839).

    Mealey's Health Law - D.C. Circuit Seeks Government Response In ACA 'Origination Clause' Attack

    WASHINGTON, D.C. - The government must respond to a man's petition for rehearing en banc in a case challenging the origination of the Patient Protection and Affordable Care Act (ACA), the District of Columbia U.S. Circuit Court of Appeals said Oct. 9 (Matt Sissel v. United States Department of Health and Human Services, et al., No. 13-5202, D.C. Cir.).

    Mealey's Health Law - 8th Circuit Remands ACA Birth-Control Case For Injury Inquiry

    ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Oct. 6 once again remanded an Patient Protection and Affordable Care Act (ACA) contraceptive mandate challenge brought by a closely held for-profit corporation for an inquiry into whether its inability to find insurance without such coverage arises from government conduct (Annex Medical Inc., et al. v. Sylvia Mathews Burwell, et al., No. 13-1118, 8th Cir.).

    Mealey's Health Law - Government Tells High Court ACA Language Supports Broad Tax Subsidy Availability

    WASHINGTON, D.C. - No conflict among courts exists regarding the availability of tax credits for individuals obtaining insurance through federal exchanges, an outcome supported by the language and structure of the Patient Protection and Affordable Care Act (ACA), the government told the U.S. Supreme Court Oct. 3 (David King, et al. v. Sylvia Mathew Burwell, et al., No. 14-114, U.S. Sup.).

    Mealey's Health Law - Nevada Supreme Court Holds Lower Court Erred In Sua Sponte Granting Judgment

    CARSON CITY, Nev. - The Nevada Supreme Court on Oct. 2 held that a lower court erred in granting summary judgment in favor of the plaintiff on two claims for relief in suit challenging a hospital's lien for payment that were not argued in the summary judgment briefing or at oral argument because the court did not give notice to the defendant that it intended to render an opinion on the claims (Renown Regional Medical Center v. The Second Judicial District Court of the State of Nevada, et al., No. 62666, Nev. Sup.; 2014 Nev. LEXIS 103).

    Mealey's Health Law - ACA Changes To False Claims Act Disclosure Bar Apply Prospectively, Judge Says

    SAVANNAH, Ga. - Changes the Patient Protection and Affordable Care Act (ACA) made to the False Claims Act public disclosure bar apply prospectively, a Georgia federal judge held Sept. 29 (United States of America and State of Georgia, ex rel. Chad Willis v. SouthernCare Inc., No. 10-124, S.D. Ga.; 2014 U.S. Dist. LEXIS 137457).

    Mealey's Health Law - Texas Federal Judge Allows Breach Claims To Continue In Reimbursement Suit

    DALLAS - On Sept. 30, a federal judge in Texas granted in part and denied in part a health insurer's motion to dismiss reimbursement claims, finding that some of the claims were subject to arbitration or that the plaintiff failed to exhaust administrative remedies. Claims for breach of the patients member benefit plans not subject to arbitration remain under the ruling (Infectious Disease Doctors v. Blue Cross Blue Shield of Texas, No. 13-2920, N.D. Texas; 2014 U.S. Dist. LEXIS 137561).

    Mealey's Health Law - Federal Judge Partially Grants Motion To Dismiss In Medicare Anti-Kickback Case

    CAMDEN, N.J. - A federal judge in New Jersey on Sept. 29 dismissed federal False Claims Act (FCA) claims that predated March 4, 2005, as barred by the statute of limitations, but otherwise declined to dismiss the qui tam Medicare dispute (United States of America, ex rel. Marc Silver, et al. v. Omnicare Inc., et al., No 11-1326, D. N.J.; 2014 U.S. Dist. LEXIS 136800).