False Medicaid billings lead to $1 million settlement

CEDAR RAPIDS - A West Des Moines home health care company has agreed to pay a $1 million settlement to the government over submitting improper expenses to Medicaid.

A settlement agreement between Ultimate Nursing Services of Iowa and its president, Steven Tucker, which provides home health care for children and young adults throughout state, and the government was released Thursday by the U.S. Attorney's Office.

The allegations against Ultimate arise from cost reports submitted to Iowa Medicaid Enterprise from Jan. 1, 2011, to June 30, 2013, according to the settlement. During this period, the reports included unallowable expenses not related to patient care, such as for travel and entertainment. The reports also failed to identify nonreimbursable costs associated with services provided to Ultimate Nursing by other companies owned by Anderson.

'We will continue to use every resource available to ensure that all Iowa health care providers play by the same rules and that government money intended to pay for health care for Medicaid or Medicare beneficiaries is spent only for its intended purpose,” U.S. Attorney Kevin Techau said in a statement.

The settlement shows Ultimate agreed to pay $250,000 no later than five days after the agreement is signed and the company has agreed to pay the remaining $750,000 during the next three years, in accordance with a promissory note guaranteed by Anderson for the entire amount.

There has not been a determination of liability, according to the settlement.

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