U.S. Supreme Court Refuses to Take Medicaid Kickback Case

U.S. Supreme Court Refuses to Take Medicaid Kickback Case

Herald Tribune

April 23, 2007

The U.S. Supreme Court on Monday refused to consider Florida’s appeal of decision that struck down an anti-kickback provision in the state’s Medicaid fraud law.

The Florida Supreme Court last year ruled the state provision conflicted with federal law. The federal justices did not comment on their decision.

The state justices ruled in the case of Dr. Gabriel Harden, a dentist, and nine employees for three dental providers who were accused of being paid to recruit Medicaid-eligible children as patients.

Harden, the lead defendant, was charged with paying employees about $25 for every child they solicited. Under the stricken provision, they could have been sentenced to a maximum of five years in prison and fined up to $25,000.

Harden’s lawyer, Anthony Vitale, acknowledged his client was involved in the pay plan but argued his actions were legal and protected under federal law. It allows patient recruiting as long as done by employees, not outside contractors.

Vitale contended federal law trumps state law because Medicaid is a federally created and funded program that states can voluntarily join.

Florida does a poor job of advertising dental services for children of indigent parents, so private providers must seek eligible patients who need dental care, the lawyer said.

State health officials disputed that argument, saying the services are well publicized through such means as county health fairs.

No further appeal is possible. The attorney general’s office has suggested that prosecutors may want to seek changes in the state law.