Ten Louisiana Residents Charged by Medicare Fraud Strike Force

Ten Louisiana Residents Charged by Medicare Fraud Strike Force:  91 Individuals Across US Accused of $295 Million in False Billing

            Two Louisiana nurses were among those named when the HHS Office of the Inspector General announced another round of charges for Medicare fraud Wednesday afternoon September 7th. Verna S. Age, 58, of New Orleans and Kathy A. Perio, 46, of Gray, were among those charged yesterday with committing Medicare fraud. Louisiana’s Medicare Fraud Strike Force continues to be active as today’s Morning Advocate 9/8/11, reports that 10 state residents have been charged, including owners, employees and this time nurses of South Louisiana Home Health Care of Houma and New Orleans. (South Louisiana Home Health is a member of HCLA.)

            The Advocate reports that defendants include: New Orleans residents Ayanna A. Alvarez, 38; Louis T. Age, 62; Verna S. Age, 58; Milton L. Womack, 59; and Mary L. Johnson, 59. The Advocate writes that the “indictment states that between January 2005 and December 2010 South Louisiana Home Health Care, Inc. of Houma and New Orleans billed $19.3 million and actually received $14.9 million for home health care services mentioned in those bills.

Louis Age owned the firm and Verna Age was its director of nursing. Both are alleged to have paid illegal kickbacks to patient recruiters. Womack and Johnson are alleged to have accepted kickbacks in return for referring patients to the firm.

Other defendants include: Dr. Michael S. Hunter, 54, of New Orleans and Kathy A. Perio, 46, a Registered Nurse of Gray, LA. Both are charged with conspiracy to commit healthcare fraud. Perio is alleged to have falsified records of patients so the firm could bill Medicare for medically unnecessary services. Hunter is also charged with conspiring to defraud the United States and receive and pay kickbacks.

Also indicted are three women with A&A Durable Medical Supply LLC, in Plaquemine. Charged with conspiracy to commit healthcare fraud are: Linda M. Jackson, 49; her mother, Eunice Sparrow, 67; and one of Jackson’s daughters, Uniecesco Smith, 29. Sparrow was assistant manager at A&A. Smith worked for A&A in operations and billing. Between April 2007 and April 2009. The charges allege that the three women used A&A to fraudulently bill Medicare more than $4.8 million for equipment either medically unnecessary or never provided to patients. The total included $2.3 million in power wheelchairs that were never provided according to the indictment.

As we all know indictments and charges are not proof of guilt. The Medicare Strike Force has located in Baton Rouge, LA and other US cities, and become active in identifying fraud in these areas because data reveals aberrant trends, cost per patient, percentage of Medicare patients receiving services or products, and other indicators. The data also drives the activity of Zone Program Integrity Contractors in many areas of the country. HCLA will continue to keep you abreast of events in the area of benefits integrity, including indictments.

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