WellCare icare Compliance Training on Fraud, Waste and Abuse and HIPAA Module 2

Transcription

1 WellCare icare Compliance Training on Fraud, Waste and Abuse and HIPAA Module WellCare Health Plans Inc. All rights reserved. 3/8/2016

2 Training Requirements As a Managed Care organization and covered entity, WellCare is required to train its employees on FWA and HIPAA. WellCare is also required to train persons working for or on behalf of WellCare, or validate that such persons have completed equivalent training on FWA and HIPAA. This includes vendors, contractors and subcontractors. 2

3 Objectives Introduce the WellCare icare Compliance Program Provide an overview of key compliance topics Identify important Compliance phone numbers Identify how to raise a compliance related concern 3

4 The WellCare Compliance Program WellCare Health Plans, including it s affiliates and subsidiaries (collectively WellCare or the Company ) is committed to the highest standards of excellence and professionalism in all it s endeavors. WellCare provides managed care services exclusively for government-sponsored health care programs, focusing on Medicaid and Medicare. Because of this exclusive focus, we are highly regulated by multiple federal and state governmental agencies as well as being subject to applicable federal and state laws and regulations. WellCare is committed to compliance through: The WellCare Code of Conduct and Business Ethics ( the Code of Conduct or the Code ), which outlines our ethical principles. WellCare policies and procedures, which clarify the Code and ensure proper operations of our company. The icare Compliance Program (the Compliance Program ), designed to prevent and address violations. 4

5 The WellCare Compliance Program (cont d) All associates, including temporary and contracted associates ( workforce members ), are expected to know and comply with WellCare s compliance program, the Code of Conduct, WellCare policies and procedures (either referenced in this training or those that apply to your role), as well as the spirit and letter of all laws and regulations. Any workforce member who violates these expectations is subject to disciplinary action, up to and including termination of employment or contract, and referral for criminal prosecution. Please take a moment and review the WellCare Code of Conduct. A copy is available by clicking attachment in the top right of this screen. The Code of Conduct can also be found on WellCare Link and on WellCare.com. 5

6 Key Compliance Topics Workplace Environment WellCare is committed to providing a healthy, productive and safe place to work. Workforce members are expected to adhere to security requirements when entering a WellCare facility or on company premises (e.g. security badges, keypad or door locks etc.). WellCare is committed to providing a workplace free from harassment or discrimination. Workforce members are expected to treat all workforce members, vendors, business partners, etc. with respect and dignity as defined in the Code of Conduct. Hiring and promotion decisions are based on merit, skills, experience, leadership, and other job-related factors. Not on ethnicity, religion, gender or sexual preference. Workforce members have an affirmative responsibility to report any incidences of harassment or discrimination. 6

7 Key Compliance Topics (cont d) WellCare Assets WellCare s computer systems are for business purposes. Work conducted on these systems, including and internet usage, are the property of WellCare. WellCare can review, monitor and record this information without prior notice. Other WellCare assets include member lists, financial transactions and documents. All workforce members are required to protect WellCare assets. 7

8 Key Compliance Topics (cont d) Improper Payments ( Kickbacks ) The knowing and willful offer, payment, solicitation or receipt of any remuneration to induce referrals or order or recommend items or services, which may be paid for under a federal health care program is prohibited. Business Courtesies, Gifts and Entertainment Workforce members must abide by the Code of Conduct as it relates to Business Courtesies, Gifts or Entertainment offered to or accepted from current or prospective members, agents, vendors or suppliers. Ineligible Persons WellCare is prohibited from hiring or entering into contracts with individuals or entities who are ineligible to participate in federal and/or state healthcare programs. 8

9 Key Compliance Topics (cont d) Health Insurance Portability and Accountability Act (HIPAA) A federal law that protects the privacy of individually identifiable member information, provides for the electronic and physical security of member medical information, and simplifies billing and other electronic transactions through the use of standard transactions and code sets (billing codes). All Health Care Providers have an obligation to protect the privacy and security of Protected Health Information (PHI). Fraud Waste and Abuse (FWA) All Health Care Providers must have a plan to detect, correct and prevent fraud, waste and abuse. All WellCare workforce members have a duty to prevent healthcare fraud and report suspected fraud, waste or abuse. 9

10 Protected Health Information (PHI) and Personally Identifiable Information (PII) What is PHI? PHI is Protected Health Information. It is any information about health status, provision of health care or payment for health care that can be linked to an individual. Examples include name, address, Social Security number, member ID number, address, etc. This includes any part of a member s medical record or payment history. Communication of PHI comes in the following forms; written, electronic, and verbal. What is PII? PII is Personally Identifiable Information. It is any information that permits the identity of an individual to be directly or indirectly inferred, including any information that is linked or linkable to that individual. 10

11 Protected Health Information (PHI) and Personally Identifiable Information (PII) cont. What is Sensitive PII? Sensitive PII, if lost, compromised, or disclosed without authorization, could result in substantial harm, embarrassment, inconvenience, or unfairness to an individual. Sensitive PII requires stricter handling guidelines because of the increased risk to an individual if the data is compromised. Some categories of PII are sensitive as stand alone data elements. Sensitive PII if Stand Alone Social Security Number Drivers License Number Passport Number Financial Account Number Biometric Identifiers State Identification Number Alien Registration Number Sensitive PII if Included with Another Identifier Citizenship or Immigration Status Medical Information Ethnic or Religious Affiliation Mother s Maiden Name Account Passwords Last 4 digits of Social Security Number Date of Birth Sexual Orientation 11

12 Safeguarding & Securing PHI & PII Safeguarding and Securing PHI and PII Shred with the appropriate means when PHI & PII is no longer needed. PHI & PII should be secured at all times. Take extra precautions to safeguard and secure PHI & PII when transporting. Do not leave PHI & PII in an unattended vehicle. Unsecured & unauthorized access of PHI & PII can lead to a potential breach. A breach is the impermissible use or disclosure of PHI & PII that compromises the privacy and security of PHI and PII. The Minimum Necessary Rule The Minimum Necessary Rule within the Privacy Rule requires that any request or distribution of PHI occurs with only the minimum amount of PHI required to complete the intended task. This includes or physical distribution. 12

13 Reporting a Compliance Concern We all have a duty to report a HIPAA violation or breach. You can do so by: Calling anonymously to the WellCare Compliance Hot Line at (866) OR Contacting the Information Security and Privacy Office with questions or concerns at HipaaPrivacyInquiries@WellCare.com 13

14 How Common is Health Care Fraud? The United States Department of Health and Human Services-Office of Inspector General (HHS-OIG) conservatively estimates that $100 Billion is lost to healthcare fraud each year. That is $273 Million a day and with healthcare costs escalating this number is expected to rise. Fraud can be committed by any person or entity in the healthcare delivery chain. 14

15 How Do I Prevent Fraud, Waste, and Abuse? Make sure you are up to date with laws and regulations applicable to your role Make sure you are familiar with WellCare s Policies and Procedures Ensure data/billing is both accurate and timely Verify information provided to you Be on the lookout for suspicious activity Understand the difference between Fraud, Waste and Abuse 15

16 How Do I Know What is Fraud, Waste, and Abuse? Fraud is an intentional deception or misrepresentation made by someone with knowledge that the deception will result in benefit or financial gain. There can be several different types of Fraud including: Provider Fraud Member and Agent Fraud Health Plan Fraud Associate Fraud Abuse is a practice that is inconsistent with accepted business or medical practices or standards and that results in unnecessary cost. Waste includes any practice that results in an unnecessary use or consumption of financial or medical resource. The next few slides provide examples of the different types of Fraud, Waste and Abuse that could be encountered to help you understand what to look for. 16

17 Provider Fraud Examples Billing for services not rendered Billing for individual therapy, where only group therapy was performed. Billing for Durable Medical Equipment (DME) supplies never delivered. Phantom provider obtains Medicaid ID number, and bills for supplies or services never rendered. Billing for appointments the patient failed to keep. Billing for a gang visit whereby a physician visits a nursing home and bills for seeing 20 patients without providing any specific service to any of them, merely signing the chart. Kickbacks Pay for the referral of patients in exchange for the ordering of diagnostic tests or other services or medical equipment. 17

18 More Provider Fraud Examples Rendering and billing for non-medically necessary services Performing Magnetic Resonance Imaging with contrast although the contrast was not indicated or necessary. Ordering higher-reimbursed, complete blood lab tests for every patient although specific or targeted tests are indicated. Upcoding - Billing a higher level service than provided Reporting CPT code (High Level Office Consultation) where services provided only warranted use of CPT code (Mid level Office Consultation). Reporting CPT code (High Level Subsequent Hospital Care) where services provided only warranted use of CPT code (Lower Level Subsequent Hospital Care. 18

19 More Provider Fraud Examples (cont d) Unbundling - The separate pricing of goods and services to increase revenue Billing separately for a post-operative visit when it is included in a global billing code. Billing a series of tests individually instead of billing a global or panel code. Provider Prescription Drug Fraud Overprescribing opioids and high cost drugs which are in turn sold on the street with the provider getting a cut (also known as pill mills ) or result in harm to a patient. Dilution or illegal importation of drugs from other countries; example high cost cancer treatment drugs. Falsifying information in order to justify coverage, such as ruling out lower cost generics. 19

20 More Provider Fraud Examples (cont d) Pharmacy Fraud Pharmacy increases the number of refills on a prescription without the prescriber s permission. Pharmacy shorting - providing less medication than ordered and billed. Pharmacy dispenses expired drugs or adulterated drugs. Processing for services that are not covered under the WellCare Over-the-Counter (OTC) benefit. Splitting prescriptions, such as splitting a 30-day prescription into four 7-day prescriptions to get additional copays and dispensing fees. Billing for prescriptions that are never picked up. Re-dispensing unused medications that have been returned or not picked up. 20

21 More Provider Fraud Examples (cont d) Overbilling or Duplicate Billing Billing a patient more than the co-pay amount for services that were prepaid or paid in full by the benefit plan under the terms of a managed care contract. Waiving patient co-pays or deductibles and overbilling the insurance carrier or benefit plan. Billing Medicare or Medicaid and the patient or private insurance for the same service. Provider bills in error and receives payment, then they decide to continue to submit their claims the same way because it paid them an additional amount they had not been receiving previously. 21

22 More Provider Fraud Examples (cont d) Billing for Non-Covered Services Billing for non-covered services as covered services (e.g., billing a rhinoplasty as deviated-septum repair). Fraudulently Justifying Payment Misrepresenting a diagnosis in order to justify payment. Falsifying documents such as certificates of medical necessity, plans of treatment and medical records to justify payment. 22

23 Member and Agent Fraud Examples Member Fraud Misrepresenting personal information by: Sharing a beneficiary ID card. Falsifying identity, eligibility, or medical condition in order to illegally receive a drug benefit. Member steals prescription pads from her doctor and forges the provider s signature. Member falsely reports the loss or theft of drugs to obtain prescriptions for narcotics. Member obtains and stores large quantities of drugs to avoid paying out of pocket costs and ensure access to the drugs during periods of noncoverage (i.e., purchasing large amounts of drugs and then disenrolling from the plan). 23

24 More Member and Agent Fraud Examples Doctor Shopping A beneficiary consults a number of doctors for the purpose of obtaining multiple prescriptions for narcotics or other prescription drugs. Doctor shopping might be indicative of an underlying scheme, such as stockpiling or resale on the black market/street. Theft of ID/Services An unauthorized individual uses a member s Medicare/Medicaid card to receive medical care, supplies, pharmacy scripts, or equipment; often a family member or acquaintance. 24

25 More Member and Agent Fraud Examples (cont d) Agent Fraud Falsification of Documentation/Forgery An agent forging a person s signature on an application. Misrepresentation of Benefits An agent misrepresenting benefits to persuade an individual to join a health plan. 25

26 Health Plan and Provider Fraud Examples Encounter Data Falsification Health plans knowingly submitting falsified claims encounter data to gain a higher Healthcare Effectiveness Data and Information Set (HEDIS) score. Underutilization Providers or health plans deliberately and systematically deterring members from receiving medically necessary services in order to maximize service funds or capitation revenue. Quality Access Falsification of network adequacy reporting in order obtain government contracts. 26

27 Health Plan and Provider Fraud Examples (cont d) Inappropriate Enrollment/Disenrollment Health plan improperly reporting enrollment and disenrollment data to CMS to inflate prospective payments. Online enrollment requests received in the last days of a month, followed by submission of high-cost claims such as infusion therapy claims, in the initial days of the following month. Outbound enrollment verification calls identifying that the beneficiary s telephone number is an automated voic box that has not been set up. Enrollment requests for beneficiaries deceased prior to enrollment date. 27

28 Associate Fraud Examples Creating a fictitious provider in the system, and submitting claims that result in checks going back to the associate s business or designated address, (i.e., to a dummy corporation). Selling or exchanging member information to sales agents with other plans. Receiving a kickback or commission from an outside individual or entity in return for approving claims that should have been denied. Falsifying enrollee signatures on any type of document. Providing WellCare computer system log-in credentials to other employees or non-employees for purposes of allowing others to access member information. Falsely inflating production-related statistics in order to meet personal or corporate goals. Intentionally providing or concealing inaccurate data in a report to a government agency. 28

29 More Associate Fraud Examples Receiving a kickback or commission from an outside individual or entity in return for approving claims that should have been denied. Deliberately and falsely altering the information on a provider s credentialing application (e.g., altering the date of a provider credentialing application) to ensure they are credentialed by the Company. 29

30 Examples of Abuse Abuse can include a range of improper behaviors or billing practices. For example: Billing for a non-covered service. Misusing codes on the claim. (i.e., the way the service is coded on the claim does not comply with national or local guidelines or is not billed as rendered) Inappropriately allocating costs on a cost report. 30

31 Difference Between Fraud and Abuse Both fraud and abuse are prohibited. The key difference between fraud and abuse is that there is a higher standard for fraud than for abuse: you needintent (knowledge or willfulness) to commit fraud. Examples of Fraud and Abuse include: Fraud: The provider knew that service was non-covered, but changed the ICD-9 diagnosis to obtain coverage. Abuse: Provider suspected that service might not be covered, but figured that she would test and submit a claim anyway. Fraud: Provider sat down with billing policies and deliberately figured out loop-holes. Abuse: Provider assumed that must be billing correctly as long as claims paid. Fraud: Hospital personnel deliberately misclassified expense items. Abuse: Hospital construed regulatory ambiguities guided solely by financial benefit to hospital. 31

32 Abuse Example Due to poor training, a doctor s office staff bills all office visits under a single Current Procedural Terminology (CPT) code (e.g., 99214) for every service, regardless of complexity or duration. The office staff did not intend to commit fraud and overcharge and undercharge for the services the doctor provided, but the doctor ultimately received more reimbursement than she should have received. 32

33 Waste Example In a hospital setting, a patient needs 375 ml of medication. The pharmaceutical company does not make a 375 ml bottle but only 500 ml or 1000 ml bottles. Once the bottle is opened, the unused portion must be disposed of, i.e., wasted. Even greater waste would occur if the hospital consistently orders and uses the 1000 ml bottle when the 500 ml bottle is available. (Fraud may be occurring if the hospital s choice to purchase 1000 ml bottles is influenced, for example, by favorable manufacturer rebates tied to 1000 ml bottles.) 33

34 FWA Red Flags Medical claims that duplicate or unbundle procedures to maximize payment. Dates of service not recorded in medical records or that do not match bill dates. Different names or addresses of dependents and primary covered person. Duplicate requests for authorization of a service that has been denied. Changing documentation during the appeals and grievance process to overturn a denied authorization. Multiple claims submitted on different dates for the same member, each showing same dates of services or overlapping dates of service. Members continually switching Primary Care Providers in order to obtain drug prescriptions from each. Significant spike in provider s claims activity or reimbursement in comparison to provider s historical activity. 34

35 Individual Responsibilities WellCare s policies and procedures provide you with a road map of appropriate health plan conduct. Familiarize yourself with these policies and procedures and follow them. If, in the course of your work, you come across situations that do not make sense and you feel might involve fraud, waste or abuse, you can do any and all of the following: Discuss the situation with your supervisor; Report the situation to WellCare s icare Hotline at if the situation involves conduct by WellCare or its associates; Report the situation directly to WellCare s Compliance or Legal Department personnel. If you suspect that a provider may be committing fraud, report your suspicion to WellCare s Fraud Hotline at

36 WellCare s Responsibility Through its Corporate Compliance Program, WellCare investigates suspected fraud, waste or abuse, and, as appropriate, reports and cooperates with both federal and state agencies, including law enforcement, CMS and Medicare Drug Integrity Contractors. WellCare s Special Investigations Unit (SIU) investigates and resolves cases involving potential fraud where WellCare is the potential victim. The SIU comprises claims specialists, investigators, clinical personnel, regulatory experts and data analysts who focus on detecting, investigating and resolving cases of FWA. To ensure compliance and to deter and detect fraud, waste and abuse, WellCare conducts regular and periodic compliance audits performed by both internal and external auditors and staff who have expertise in federal and state health care laws and regulations. 36

37 What s the Difference Between the icare Hotline and the Fraud Hotline? icare Hotline (phone or web, located on WellCare link): if you suspect inappropriate conduct within WellCare, you should report it to the icare Hotline ( ). You may choose to remain anonymous. The icare Hotline portal is maintained by a third party and is designed to allow a reporter to maintain his or her anonymity throughout the course of an investigation. Calls to the icare Hotline are handled internally by a small number of designated compliance staff. Fraud Hotline: if you suspect that a provider or member may be committing fraud against WellCare, you should report it to the Special Investigation Unit s Fraud Hotline ( ) or refer to one of the referral mailboxes RXFRAUD, SIU and/or icare. WellCare supports a strong Non-Retaliation Policy and does not tolerate retaliation against anyone who, in good faith, reports possible or actual misconduct. 37

38 Real Life Examples In New Jersey, a podiatrist was sentenced to 24 months in prison and ordered to pay $350,000 in restitution for his guilty plea to health care fraud. An investigation revealed that the podiatrist performed routine foot care on residents in community rooms of low-income buildings, then billed the Medicare program as if he performed more complex procedures. In fact, residents were only getting their nails clipped. In Georgia, a respiratory therapist was sentenced to 5 years in prison and ordered to pay $2.7 million in restitution for conspiracy to commit health care fraud. The respiratory therapist, who worked in a hospital, provided false blood test results for patients so a Durable Medical Equipment provider could in turn bill Medicare and Medicaid for unnecessary oxygen treatments. 38

39 Potential False Claims Violations Misrepresentation of information presented in reports to Medicare or Medicaid Pharmaceutical industry paid substantial sums to settle False Claims Act (FCA) cases based on prices reported to the Red Book and First Data Bank which did not reflect discounts the companies routinely gave customers. Misrepresentation of claims or eligibility data reported to Medicare or Medicaid Humana paid $14.5 million to settle allegations that it incorrectly claimed members as dually eligible for both Medicare and Medicaid, and entered into a broad five-year corporate integrity agreement with the OIG. 39

40 Potential False Claims Violations (cont d) Calculation/reporting to Medicare/Medicaid of utilization or costs not supported by applicable law or regulations. Interpretations which produce greater revenue to plan at greater cost to government programs likely to be suspect. Providing full disclosure, and in some instances obtaining prior approval, is important to defending such interpretations. Columbia/HCA pled guilty to an FCA violation and paid a substantial sum to settle allegations involving aggressive positions taken on its hospital cost reports. Failing promptly to return known or identified overpayments made by the government or government intermediaries can trigger FCA liability. 40

41 Background Checks As part of our hiring or placement process, WellCare performs background checks and screens against certain government exclusion lists on all new associates upon hire and then on a monthly basis. As part of the temporary employment placement process, similar background checks and screening against these same exclusion lists are coordinated. These checks are important for many reasons, including that the Company may be sanctioned for employing or contracting with individuals who have certain types of criminal convictions or who have been excluded from participating in Federal or State health care programs. If an individual is found on any of these lists, he or she will be subject to immediate termination from employment. 41

42 Fair Enforcement WellCare is committed to complying with federal and state laws. In cases where laws, regulations, or WellCare s Code of Conduct is violated, corrective or disciplinary action will be based upon a consideration of the facts and circumstances and other factors, applied to all, without regard to title or level of responsibility within the organization. 42

43 Reporting a Suspected Incident All WellCare workforce members, in good faith, are required to report suspected violations or conduct that appears to be fraudulent or in conflict with the principles of the Compliance Program. Reports may be verbal or in writing to: Supervisor icare Hotline ( ) or icare Web Portal Regional Compliance or Regulatory Affairs Staff Chief Auditor Compliance Liaisons Corporate Compliance Department Chief Compliance Officer All reports will remain confidential as outlined in the Compliance Program. No adverse or retaliatory actions may lawfully be taken against anyone who reports an issue in good faith. 43

44 Duty to Raise Compliance Concerns Workforce members are WellCare s first line of defense in detecting and preventing violations and all workforce members are obligated to report actual or suspected violations. Failure to report misconduct may disqualify workforce members from eligibility for raises or bonuses or other disciplinary action, up to and including termination. Always seek advice when you are not sure about the right ethical or legal thing to do at WellCare. Do not guess whether a particular action is permitted. WellCare absolutely prohibits retaliation against any workforce member who raises a compliance concern in good faith. Retaliation towards a workforce member who raises a compliance concern in good faith is subject to disciplinary action, up to and including termination. If you believe someone has retaliated against you for raising a compliance concern, call the Compliance Hotline immediately. 44

45 Prohibition on Bribes, Kickbacks and Illegal Inducements The Federal Anti-Kickback statute (AKS) is designed to protect patients and Federal health care programs (such as Medicare and Medicaid) from fraud and abuse. It is a felony to knowingly and willfully solicit, receive, offer or pay anything of value (also called remuneration ) in return for: - Patient referrals, or - Recommendations or orders for any item or service reimbursed by a Federal health care program. Compliance with this law is of the utmost importance because you no longer need intent or knowledge to commit a violation of the statute. 45

46 Prohibition on Bribes, Kickbacks and Illegal Inducements (cont d) Actions that may violate this law include the receipt or offering of gifts or entertainment, forgiveness of debts, sales of items at less than fair market value, and payment for services that exceeds fair market value. - REMINDER providing gifts or cash incentives to WellCare members or physicians in exchange for enrollment or accepting payments from drug or device manufacturers for coverage of their products is prohibited. There are some exceptions to the federal AKS, but given that several states have enacted anti-kickback laws that may be more restrictive than the federal AKS, please contact the Compliance or Legal Departments if you are asked to give or receive certain items referred to above. 46

47 Prohibition on Bribes, Kickbacks and Illegal Inducements (cont d) Penalties: Medicare Advantage Organization (MAO) Prescription Drug Benefit (PDP) enrollment freeze and sanctions under CMS authority up to $25,000 per beneficiary impacted by an anti-kickback violation. Providers: up to five years in prison and fine up to $25,000. If a patient suffers bodily injury as a result of any kickback schemes, such as unnecessary procedures, the prison sentence may be 20 plus years. The Beneficiary Inducement Statute prohibits certain inducements to Medicare beneficiaries. i.e. waives the coinsurance and deductible amounts after determining in good faith that the individual is in financial need; or fails to collect coinsurance or deductible amounts after making reasonable collection efforts. 47

48 Physician Self-Referral Stark Law The Stark Law is related to, but not the same as, the Federal Anti-Kickback Statute. The Stark Law: Prohibits a physician from making referrals for certain designated health services payable by Medicare and Medicaid to an entity with which he or she (or an immediate family member) has a financial relationship (ownership, investment, or compensation), unless an exception applies. Prohibits the entity from presenting or causing to be presented claims to Medicare and/or Medicaid (or billing another individual, entity, or third party payer) for those referred services. Establishes a number of specific exceptions and grants the Secretary the authority to create regulatory exceptions for financial relationships that do not pose a risk of program or patient abuse. 48

49 Physician Self-Referral Stark Law (cont d) Penalties: Civil monetary penalties of potentially $15,000 for each service. Civil assessment up to treble the amount claimed. Overpayment refund obligation. False claims liability. Program exclusion for knowing violations. 49

50 Government Reimbursement and the False Claims Act The Federal False Claims Act (FCA) is a general fraud statute that aids the federal government in recovering losses it suffers due to fraud in Federal health care programs. The FCA enables private whistleblowers to bring suits on behalf of the government for a portion of the fraud recovery. The law has been expanded in recent years to: - Encompass so-called reverse false claims (i.e., failures to return overpayments). - Require any overpayments to be reported and returned within 60 days from identification. Associates involved with submitting claims or making payments to Federal health care programs will receive additional training on the False Claims Act. 50

51 Government Reimbursement and the False Claims Act (cont d) In general, part of the statute refers to any entity knowingly presenting, or causing to be presented, a false claim for payment or approval or causing to be made or used, a false record or statement material to a false or fraudulent claim. The Office of Inspector General (OIG), in consultation with the Attorney General determines whether states have false claims acts that qualify for an incentive under Section 1909 of the Social Security Act. Those states deemed to have qualifying laws, receive a ten (10) percentage-point increase in their share of any amounts recovered under such laws. The OIG guidelines for evaluating states FCAs were updated and became effective March 15,

52 Government Reimbursement and the False Claims Act (cont d) Knowingly can be: Actual knowledge. Deliberate ignorance. Reckless disregard. But not mere negligence. 52

53 Government Reimbursement and the False Claims Act (cont d) In recent years, the FCA was expanded explicitly to reach reverse false claims in cases of failure to repay overpayments. A reverse false claim is when you receive money that you should not, and say nothing or conceal that an amount is owed. The Patient Protection and Affordable Care Act (PPACA), signed into law on March 23, 2010, requires that any overpayments be reported and returned within 60 days from identification to avoid FCA liability and administrative penalties. Risk of investigation and liability and repayment obligations have increased following enactment of these new laws. 53

54 Government Reimbursement and the False Claims Act (cont d) Penalties may include: Treble damages: up to three times the amount of damages sustained by the government as a result of the fraudulent claim(s). Fines: A civil monetary penalty of between $5,500 - $11,000 per false claim. Exclusion: FCA liability can give rise to exclusion* from Federal health care programs, such as Medicare and Medicaid. Suspensions/loss of provider license/ Medicare Provider number. Many states, such as Florida, Hawaii, Georgia, Illinois and New York, have their own false claims acts that apply to state Medicaid programs and can lead to additional liability. *Exclusion: No federal health care program payment may be made for any item or service furnished, ordered, or prescribed by an individual or entity excluded by the Office of the Inspector General (OIG). Individuals must be checked at the time of hire and monthly thereafter against the OIG List of Excluded Individuals and Entities and the U.S. Government s System for Award Management (SAM) list. 54

55 Government Reimbursement and the False Claims Act (cont d) Under the civil FCA, each instance of an item or a service billed to Medicare or Medicaid counts as a claim, so fines can add up quickly. The fact that a claim results from a kickback or is made in violation of the Stark law also may render it false or fraudulent, creating liability under the civil FCA as well as the Anti-Kickback Statute or Stark law. There also is a criminal FCA. Criminal penalties for submitting false claims include imprisonment and criminal fines. 55

56 Examples of False Claims Preparing a bid submission package to CMS or a State Medicaid program that contains false data and other information. Overstating the amount of payment due from a state or federal health care program. Certifying to the accuracy of a report or data used in a submission to the government knowing that the data is inaccurate or without checking its accuracy; the submission of false enrollment or claims data to CMS constitutes a false claim. Understating a refund obligation in a report to Medicare or a state Medicaid program. Concealing an identified overpayment made by Medicare or a state Medicaid program without reporting and returning the overpayment to the appropriate payor. 56

57 Relevant Laws The False Claims Act, or FCA was enacted in 1863 to fight procurement fraud in the Civil War. The FCA has historically prohibited knowingly presenting or causing to be presented to the federal government a false or fraudulent claim for payment or approval. The FCA was recently amended through the American Recovery and Reinvestment Act of 2009 (ARRA) to expand the scope of liability and give the government enhanced investigative powers. FCA liability now extends to subcontractors working on government funded projects as well as those who submit claims for reimbursement to government agents and state agencies. This may indicate FCA liability for claims submitted to MAO and Medicaid HMOs. 57

58 Relevant Laws (cont d) Whistleblower and Whistleblower Protections: The False Claims Act and some state false claims laws permit private citizens with knowledge of fraud against the U.S. Government or state government to file suit on behalf of the government against the person or business that committed the fraud. Individuals who file such suits are known as whistleblowers. The Federal False Claims Act and some state false claims acts prohibit retaliation against individuals for investigating, filing, or participating in a whistleblower action. WellCare expressly prohibits retaliation against employees including employees of first tier, downstream, and related entities who, in good faith, report or participate in the investigation of compliance concerns. 58

59 Excluded Entities and Individuals The CFR provides the OIG the authority to exclude individuals or entities from participating in federal or state healthcare programs. First tier, downstream and related entities may not employ or contract with entities or individuals who are excluded from doing business with the federal government. The OIG maintains a database of excluded individuals and entities and all providers have an obligation to screen individuals and entities prior to hiring and on a periodic basis. 59

60 Penalties for Non-Compliance Federal Criminal Statutes Knowing and intentional compliance violations, depending on their severity, may cause WellCare (and any associates, officers, contractors, or agents) to violate criminal fraud statutes, including statutes that punish: Submission of False Claims and Making False Statements: Imposes criminal fines or up to 5 years in prison if WellCare knowingly and intentionally submits or causes the submission of false claims to the government. Such false claims may include: - Requests for reimbursement through Kick payment claims or billing to State Pharmaceutical Assistance Programs (SPAPs). - Reports of costs. - Encounter data. - Any other reports that contain information and data and affect the reimbursement WellCare receives from CMS or state Medicaid programs. 60

61 Penalties for Non-Compliance Federal Criminal Statutes (cont d) Mail Fraud: Imposes criminal fines and/or 20 years in prison for anyone who commits fraud through the mail. Health Care Fraud: Imposes criminal fines and up to 10 years in prison for anyone who defrauds Medicare or Medicaid. Wire Fraud: Imposes criminal fines and up to 20 years in prison for committing fraud through wire, radio or television communications. Obstruction of Justice: Imposes criminal fines and up to 20 years in prison for anyone who covers up or conceals records in order to interfere with a government investigation. 61

62 Summary As members of the WellCare workforce, we are expected to: Follow the WellCare Code of Conduct and Business Ethics. Abide by all Company Policies and Procedures. Adhere to State and Federal Regulations. Report Any Suspected Compliance Violations. Complete General Compliance training on at least an annual basis. 62

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64 Thank you! You have successfully completed: WellCare General Compliance Training and Fraud Waste and Abuse Prevention Awareness Training Module 2 64