Attorney General Recovers $1 Million For Taxpayers In Settlement With Long Island Home Health Care Agency

Attorney General Spitzer today announced that Holmar Nursing Agency, Inc., a home health care company in Rockville Centre, has agreed to repay taxpayers nearly $1 million in Medicaid overpayments. In filing annual cost reports with the State Department of Health (DOH) for the years 1992 through 1994, Holmar had erroneously included the costs for licensed practical nurse services when only personal care aide costs should have been included. As a result, DOH established a higher reimbursement rate for Holmar than was warranted.

Under the terms of the settlement agreement, Holmar will forfeit claim to $517,224 in pending Medicaid payments presently being held in escrow by DOH. In addition, $413,740 plus interest, will be recouped over the next ninety weeks through withholdings of Medicaid reimbursement to the company.

"The taxpayer-funded Medicaid program was designed to assist citizens in need," said Attorney General Spitzer. "The recovery of this money by my Medicaid Fraud Control Unit (MFCU) will go a long way in ensuring that those needs are being properly met."

Holmar Nursing Agency, Inc., is located at 278 Merrick Road in Rockville Centre, Long Island, and provides home care services to more than 150 patients.

The investigation was conducted by Special Assistant Attorney General Michael L. Rice, of the Long Island Regional Office of the MFCU. Special Assistant Attorney General Laurence J. Iacueo, Director of the MFCU's Civil Unit, assisted in the settlement. All cases are handled under the direct supervision of Deputy Attorney General Jos? Maldonado.