The U.S. Department of Justice (DOJ), in a recent press release, revealed that Intrepid U.S.A. has paid the United States $8 million to resolve allegations of Medicaid fraud.
The government alleged that the company fraudulently overbilled three large federal health care programs. The three were Medicaid, Medicare, and TRICARE/CHAMPUS, the large military health care program.

The payment puts to rest federal and state allegations against the Edina, Minnesota company. The DOJ and the U.S District Attorney’s Office for the District of Minnesota claim the company, with more than 150 home health agencies, violated the False Claims Act for seven years, from 1997 to 2004.

They allegedly billed Medicare and TRICARE, in violation of the Act in the following ways:

• Services were provided by a person not qualified to deliver them
• Intrepid failed to complete and maintain required documents to support claims
• Otherwise broke various Medicare regulations

In addition, the government contended that Intrepid violated the False Claims Act in 2002 and 2003 by billing the Medicaid program in Minnesota for services that were never provided because the beneficiary was in fact hospitalized at the time he or she was supposedly receiving services in the home.

Intrepid faced operational problems as well. Along with 67 of its subsidiaries, it filed for Chapter 11 bankruptcy protection in 2004. The bankruptcy court gave the company its approval for both the settlement and reorganization plan. It also allowed the company to retain its provider agreements.

In an attempt to improve its policies going forward, Intrepid agreed to strengthen and extend the provisions of its Corporate Integrity Agreement with the U.S. Department of Health and Human Services. It will be required to ensure continuing compliance with Medicare program requirements.

These provisions will extend to the post-bankruptcy reorganized companies as well.

Have information on Medicaid Fraud?

If you have information about Medicaid fraud, contact the Medicaid Fraud Reporting Center for a confidential claim evaluation today. You may report Medicaid fraud by completing the form on this page, or by calling our Medicaid Fraud Hotline at 1-800-934-2921.