The Daily Scan

July 31, 2018

Last Updated: 8:50 AM EST 

Litigation 

  • A federal jury convicted a Sterling, Virginia woman after a two-week trial of one conspiracy to commit health care and wire fraud, seven counts of health care fraud, one count of conspiracy to defraud the United States and one count of filing a false tax return. These charges came after Young Yi, 44, a citizen of South Korea operated a fraudulent sleep study clinic in Northern Virginia. Assistant Attorney General Benczkowski commented, "Young Yi fueled her lavish lifestyle by misleading patients, withholding information from physicians, and using doctors’ identifying information without their permission in order to steal millions of dollars from Medicare and private insurers, today’s verdict highlights the important work of the Department and our law enforcement partners as we seek to hold people accountable for defrauding our health care system.” (Justice.gov

  • North Carolina home care company, Compassionate Home Care Services Inc. has entered a $2.17 million judgement. The owner and son are alleged to have submitted fraudulent Medicaid claims, ruling in favoring of the damages and penalties requested following a jury verdict. (Law360.com)

Regulation 

  • The U.S. Food and Drug Administration has rejected Insys Therapeutics Inc's new opioid painkilling spray. Insys commented that on Friday they received a complete response letter from the FDA about their company's new drug application. The FDA rejected the spray which is meant to be administered under the tongue to relieve moderate to severe acute pain because some of the data suggested potential safety concerns. (Law360.com

  • The U.S. Food and Drug Administration approves Azedra injection for intravenous use for the treatment of adults and adolescents age 12 and older with rare tumors of the adrenal gland. This is the first FDA- approved drug for this use as the tumors cannot be surgically removed, and have spread beyond the original tumor site, additionally they require systemic anticancer therapy. The FDA granted this application Fast Track, Breakthrough Therapy and Priority Review designations. Azedra also received Orphan Drug designation, which provides incentives to assist and encourage the development of drugs for rare diseases. (FDA.gov

Legislation 

  • Wisconsin Governor Scott Walker (R) has gained approval for his Health Care Stability Plan by the federal government. This plan is expected to lower 2019 premium rates in Wisconsin's individual health insurance market on a weighted average by 3.5% from the 2018 rate and by an estimated 11% as compared without the waiver. Walker commented, "people in the individual market saw their premiums go up by 44% on average last year, and some saw much larger increases – that’s unsustainable and unacceptable, thankfully, the federal government is giving us the flexibility to implement a Wisconsin-based solution to help stabilize premiums. Our Health Care Stability Plan is simple and it lowers costs. In fact, it’s expected to actually lower premiums by 3.5% on average in 2019. Thanks to the Wisconsin Legislature for all of its work and support on this monumental reform.” (Walker.Wi.gov)

 

 

 

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