Justice Dept.: Martin's Point Health Care to Pay $22,485,000 to Resolve False Claims Act Allegations - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
August 1, 2023 Newswires
Share
Share
Post
Email

Justice Dept.: Martin's Point Health Care to Pay $22,485,000 to Resolve False Claims Act Allegations

Targeted News Service (Press Releases)

WASHINGTON, Aug. 1 -- The U.S. Department of Justice issued the following news release:

Martin's Point Health Care Inc. (Martin's Point), headquartered in Portland, Maine, has agreed to pay $22,485,000 to resolve allegations that it violated the False Claims Act by submitting inaccurate diagnosis codes for its Medicare Advantage Plan enrollees in order to increase reimbursements from Medicare.

Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed care insurance plans called Medicare Advantage Plans (MA Plans). MA Plans are paid a per-person amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans. The Centers for Medicare and Medicaid Services (CMS), which oversees the Medicare program, adjusts the payments to MA Plans based on demographic information and the diagnoses of each plan beneficiary. The adjustments are commonly referred to as "risk scores." In general, a beneficiary with diagnoses more expensive to treat will have a higher risk score, and CMS will make a larger risk-adjusted payment to the MA Plan for that beneficiary.

Martin's Point operates Medicare Advantage plans for beneficiaries living in Maine and New Hampshire. The United States alleged that, from 2016 to 2019, Martin's Point engaged in chart reviews of their Medicare Advantage beneficiaries to identify additional diagnosis codes that had not been submitted to Medicare. Many of the additional codes submitted, however, were not properly supported by the patients' medical records. The government alleged that Martin's Point nevertheless submitted those diagnosis codes, which resulted in higher payments from CMS.

"The government expects those who participate in Medicare Advantage to provide accurate information to ensure that proper payments are made for the care received by enrolled beneficiaries," said Deputy Assistant Attorney General Michael D. Granston of the Justice Department's Civil Division, Commercial Litigation Branch. "Today's result sends a clear message to the Medicare Advantage community that the United States will take appropriate action against those who knowingly submit inflated claims for reimbursement."

"It is a privilege for health plans to provide services to Medicare beneficiaries, not a right. Medicare Advantage Plan sponsors that submit inaccurate claim information in order to justify inflated payments undermine the financial integrity of the program," said Deputy Inspector General for Investigations Christian J. Schrank at the Department of Health and Human Services, Office of Inspector (HHS-OIG). "HHS-OIG remains committed to protecting taxpayer-funded health care programs, including Medicare Advantage."

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Alicia Wilbur, a former manager in Martin's Point's Risk Adjustment Operations group. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Wilbur v. Martin's Point Health Care Inc., No. 2:18-cv-00254 (DME). As part of today's resolution, the whistleblower will receive approximately $3.8 million.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department's Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney's Office for the District of Maine, with assistance from HHS-OIG.

The investigation and resolution of this matter illustrates the government's emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The matter was handled by Trial Attorney J. Jennifer Koh of the Justice Department's Civil Division and Assistant U.S. Attorneys John Osborn and James Concannon for the District of Maine with the assistance of the U.S. Attorney's Office's in-house auditor.

* * *

View the settlement here: https://www.justice.gov/media/1308116/dl?inline

* * *

Original text here: https://www.justice.gov/opa/pr/martins-point-health-care-inc-pay-22485000-resolve-false-claims-act-allegations

Older

Aon Survey Reveals Major Cyber Incidents Resulted in a Nine Percent Decrease in Shareholder Value

Newer

SAFE TRAVEL? THERE'S AN APP FOR THAT. FREELY'S POPULAR INSURANCE AND SAFETY APP LAUNCHES IN THE U.S.

Advisor News

  • Inflation, competing priorities and uncertainty erode retirement security
  • As health premiums rise, 1 in 8 workers cut retirement savings
  • CT governor’s candidates claims: What’s true, and what’s misleading
  • Retaining clients by giving them a memorable experience
  • Addressing the longevity paradox
More Advisor News

Annuity News

  • National Life Group expands annuity portfolio
  • AM Best to Join Life/Annuity Insurance-Focused Panel Discussion at Capitol Forum Event
  • USAA Earns No. 1 Ranking in JD Power Individual Annuity Study for the Third Consecutive Year
  • How flexible annuities fit today’s retirement portfolios
  • Foresters Financial appoints Tom Ross as chief distribution officer for U.S. annuity sales
More Annuity News

Health/Employee Benefits News

  • How the law protecting Americans from surprise medical bills is driving up healthcare costs
  • Your Georgia Auto Policy Speaks English — Here's How to Read the Fine Print
  • Pennsylvania Law Mandates No-Cost Coverage for Colorectal Cancer Blood Tests
  • Open Enrollment set to begin Nov. 1
  • Advice for health care open enrollment beginning November 1
More Health/Employee Benefits News

Life Insurance News

  • Palmetto Heritage and Atlantic Coast Life Announce Discussions Regarding Potential Acquisition
  • Jury finds insurance company acted in bad faith, awards Nebraska woman $11.3M
  • AM Best Affirms Credit Ratings of GIG Insurance – Egypt S.A.E.
  • Symetra Named to Fortune Best Workplaces For Women™ List for Fifth Consecutive Year
  • AM Best to Join Life/Annuity Insurance-Focused Panel Discussion at Capitol Forum Event
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.