Eaton Peabody

Have You Hired a Blacklisted Employee?- Author: Clare Hudson Payne, Esq.

Do you receive money from a federal health care program, such as Medicare or Medicaid? If so, you should be aware that who you hire may affect your ability to collect such government funds, and even expose you to civil liability.

The Office of the Inspector General, established by the U.S. Department of Health and Human Services, maintains a list of individuals and entities who have been excluded from participation in all federal health care programs due to health care fraud or abuse. Services or products provided by an excluded party are not eligible for any federal health care program reimbursement.

Although these laws have been on the books for several years, they are not well known among employers. The implications, however, for those who employ or contract with excluded parties are staggering. Employers of such blacklisted individuals are subject to liability if they seek reimbursement for the excluded employee’s work. The sanctions are serious: liability can reach up to $10,000 for each service or item provided by the employee, as well as treble costs.

Furthermore, implicated services extend beyond those provided by hospitals, nursing homes and group homes—also included are services provided by pharmacies, ambulances, medical delivery personnel, social workers, medical claim processors, billing agents, accountants, and other industries related to the health care field. In addition, purchasing equipment sold by an excluded manufacturer or supplier can give rise to liability.

Not knowing if you employ a blacklisted person will not shield you from liability, but you can check the “list” by accessing the Office of the Inspector General’s website. Scroll down to view detailed instructions on how to access the list. This comprehensive list is updated monthly. As of September 19, 2005, there are 241 employees and 4 companies listed as residing in the State of Maine.

• How to View Future Blacklist

1. Access the Office of the Inspector’s database here.
2. Follow the basic instructions to select the download procedure best for you.
3. Return to the database page to download the Updated LEIE file.
4. When you are viewing the file in Excel click "sort", choose the "state" option, and type in "ME" This will sort the file by state making it easier for you to scroll down and view.

Please contact Clare Hudson Payne at 207-947-0111 for further information.

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