Corporate Compliance

OIG issues advisory opinion regarding subsidizing costs for the needy

Healthcare Auditing Weekly, August 7, 2007

The OIG recently released an advisory opinion regarding a charitable organization's arrangement to subsidize cost-sharing and premium obligations owed by financially needy Medicare or Medicaid patients with certain chronic diseases.

The OIG concluded that the arrangement does not constitute grounds for penalties and while the arrangement could potentially generate prohibited remuneration under the anti-kickback statute, if the requisite intent to induce or reward referrals of federal healthcare program business were present, the OIG would not impose administrative sanctions on the requestors.

Click here to read the entire advisory opinion on the OIG Web site.

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