45 Million Wasted in Medicaid Frauds
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The Daily Register VOL.98 NO. 160 SHREWSBURY, N. J. TUESDAY, FEBRUARY 17, 1976 15 CENTS $45 million wasted in Medicailaboratories controlled 70 per tories dfor analysi fraudss of blood were billed to Medicaid for a WASHINGTON (AP) - Kickbacks, fraudulent billing cent of the Medicaid busi- and other specimens taken total of |58 "This, is almost and overpayments involving a ness," the report said. "In from ihe poor, aged, blind five times the maximum per few medical laboratories New Jersey, a dozen clinics and disabled Another 132 5 mlssibie reinbursement of wastes almost (1 out of 15 controlled more than M per million is paid for Medicare »12.50," he said. paid out for Medicare and cent of Medicaid funds. In Il- for' persons 65 years and old- Moss said he was so Medicaid lab services, a Sen- linois, the 21 labs under the er. shocked by the staff report ate committee was told yes- subcommittee's scrutiny con- In New Jersey, the report that he went to "see things terday. trolled 80 per cent of the said "in some cases the stale for myself" and "I saw the "It is our judgment that it state'! Medicaid business." was even billed for tests run proliferation of so-called me- least MS million of the $213 The staff said it appears free by its own health depart- dical clinics spreading like million in Medicare and Medi- from its findings in other ment." mushrooms all over Chi- caid payments for clinical states "that kickbacks are so Frank L. Holstein executive cago" laboratories is either fraudu- rampant that laboratories are director of the New Jersey "I visited a postage stamp lent or unnecessary," the almost barred from obtaining State Commission of In- size clinical laboratory which staff of the special Committee a Medicaid account unless vestigation, testified that billed Medicaid for almost on Aging said. they offer a kickback" to phy- "shortcomings and loopholes 1200,000 last year." Moss said. Chairman Frank Moss. I) sicians. which had developed in the "There was little In the way Utah, made the report public The report focused on Il- New Jersey Medicaid pro- of equipment and no lab tech- in resuming hearings on fraud linois, but mentioned Pennsyl- gram presented a virtual nicians in evidence While the and abuse in the programs. vania and California as well open door to those laboratory owner assured us as to Ihe The report said thai "nu- as New'York, New Jersey as owners to profiteer at the tax- quality of the work per- merically the number of of- states where abuses occurred payers' expense." formed, I heard from the fenders identified in in- Under the Medicaid pro- Holstein cited one instance owner himself that he chose vestigation is small but their gram, state and federal gov- in which seven parts of a test to send his wife's blood test to HEARING ABOUT KICKBACKS - Three mem- lions of dollars In Medicaid funds to physicians In another laboratory " bers of a Senate subcommittee on aging heard tes- at least five states. From left, Charles Percy, R- proportion of public funds for ernments will pay a total of performed by Park Medical timony yesterday on Capitol HIM that a small num- III.; Frank Moss, D-Utah, chairman, and Peter lab service is large about $180 5 million in the Laboratory by an automated The committee staff report. current fiscal year to labora- laboratory at a coil of S3 40 ber of medical laboratories are kicking back mil- Domenlcl, R-N.M. "In New York 17 clinical See MS mlllioa. page > , Eatontown scores illegal job action threats By SHERRY FIGDORE The Introduction now has and Machine Workers (HE) cilman Lawrence F. Boff. workers hired under the fed- Ihe lowest starling scale in council declared "they are by tual average annual pay to been tentatively set for an AFL-CIO affiliate. chairman of the public works eral Comprehensive Employ- the borough with federal no means disgraceful." $10,812, or $5 JO an hour. EATONTOWN - Borough March 3, with council now an Mr. Bernardinl described department. ment Training Act (CETAj funds," council said Contrary to Mr. Her Bridling at the IUE's con- officials have challenged a tlcipating a 47-cenl rise in the salaries paid to the borough's Borough Attorney Richard and whose salaries were paid "Now they are either en- nardinl's insistence that local tention that local workers union representative's tax rate for Ihe local and re- 60 public works employes L. Bonello agreed that the by federal funds. couraging discontent among people were paid under 18.000 were underpaid by national charges thai municipal road gional school and 13 cents workers as "disgraceful." present status of the salary In a prepared statement, our permanent employes or a year and $5,240 behind Ihe standards, council said these and parks workers are under- more for the county share said annual salaries were less talks "left room for settle- councilmen threatened termi- are being used lo distort the national average, council said references were "less mean- paid and have adopted a than 18,000 and declared thai ment, if reasonable," and nation of the local CETA pro- true salary picture of our the average annual pay of ingful than area averages ' tough line against "threats of At a press conference yes. current salary talks were now said the distance between the gram since it was "also regular employes." each of the It is 18.454. But And in Region III of the slate illegal (job) actions" and terday afternoon. Mayor J at an impasse two sides was "not irrepa- emerging that the presence of "While this program, sched- added to that, municipal offi- Municipal Salary Survey 1175. "distortions of facts" on the Joseph Frankel, Borough On the contrary, said coun- rable." CETA employes in the uled to terminate June 30. cials claim that additional which includes Monmouth. part of the union. Council, its attorney and ad- cil, salary negotiations that Despite the union's claim of borough is complicating our might be extended, we shall fringe benefits paid to Ihe Ocean, Middlesex. Mercer Failure to settle new sala- ministrator marshalled a mul- began in early November an "impasse being reached, negotiations" not renew our participation men by the borough add an and Burlington Counties. Ea- ries with the park, road and ti-page fact sheet that con- have been continued on an al- council said neither side had The borough joined the fed- where it has been used to the extra 12,352 per year tontown was eighth highest of sanitation workers la a main tradicted, point by point, most weekly basis since then requested a negotiator. eral program in January. long-term disadvantage of our Computed on an hourly all municipalities in wages factor In council's decision to statements made last and the two sides are sched- As to the IUE'S claim thai 1175, they said, to help the municipality." the council basis, council said the munici- paid to laborers, 11th highest postpone Introduction of Its Wednesday by Arnold Ber uled to meet again Thursday it represents 10 borough unemployed and lo accom- statement continued. pal contributions lo hospi- for sanitation workers, and new municipal budget, ongi nardini. International repre- "We think we are negotiat- workers, council said Ihe real . plish projects Ihe municipal- And as far as the salaries of lalization, pension plans uni- third lowest for mechanics. nally planned tor tomorrow sentative for the International ing in good faith and progress number was 37 employes, of ity could not otherwise afford. the II permanent public forms, and holiday, vacation In addition. Borough Ad night. Union of Electrical. Radio Is being made," said Coun- which 18 were temporary "These workers are paid at works and parks employes go. and sick pay brought the ac- See EaloaUwa, page I Little Silver council irate at railroad plan By JULIE MCDONNELL tween South Amboy and Red Ish to have people change "They are holding up nego- Bank. drains in Red Bank. Maybe tiations," he said. LITTLE SILVER - The southern terminus for for once our proximity to James Canneto. a spokes- Borough Council members electric rail operation is now Monmouth Park will be a man for the Little Silver pub- are steaming at the thought at South Amboy. wilh diesel benefit." lic works employes, would nol that the planned-elec- service between there and Ihe He said he believed it would comment last night except lo trification of the New York & end of the line at Bay Head be a mistake for elec- say that negotiations are now Long Branch Railroad may trification to stop north of the Last week, Theodore J. under way. stop just short of their door- Labrecque. chairman of the, park, which is located in step. Monmouth County Trans- Oceanport. The council also received a We've been waiting 50 portation Coordinating Com- Mr. Labrecque's committee letter from Allan I) Wright, years for improvements to mittee, said there was a pos- has been urging the slate to confirming his resignation as the line," said Councilman II sibility that electrification electrify the line for its entire Civil Defense director A. "Hal" Steiner 3d It could extend through Little length. The council took no action would be outrageous if the Silver. The mayor said he has sent on the letter, turning it over improvements now stopped a And that's a possibility a letter to Mr. Labrecque ur- to Councilman John A Mor hair's breadth away from councilmen Intend to pursue ging that electrification be tensen.