This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Coventry Enters Into Civil Settlement Agreement With U.S. Attorney’s Office For The District Of Maryland, Northern Division

Coventry Health Care, Inc. (NYSE: CVH) has entered into a civil monetary settlement agreement with the U.S. Attorney’s Office for the District of Maryland, Northern Division. This agreement is the result of a previously disclosed subpoena and subsequent investigation into the Company’s operational process for confirming Medicare eligibility for its Workers’ Compensation set-aside product. The Company fully cooperated with the investigation. According to the agreement, Coventry will pay a $3 million fine which had been previously accrued by the Company, and no civil or criminal charges will be filed. The Company has been informed by the U.S. Attorney’s Office that with this agreement, the matter is closed at all governmental levels and agencies.

In 2008, the U.S. Attorney’s Office began an investigation into practices of First Health Priority Services, relating to its Medicare Set-Aside Arrangement (MSA) product. This product entered Coventry’s portfolio as part of its acquisition of the First Health Workers’ Compensation business in 2005, and since that time it has represented less than 0.25% of Coventry’s consolidated revenues. Coventry no longer sells this product.

Under federal law, insurance companies that are working to settle a workers’ compensation claim are required to account for whether that injured person is a Medicare beneficiary. If the claimant is a Medicare beneficiary, the insurer must “set aside” an appropriate amount of funds to ensure that Medicare does not pay for those medical costs. This information, submitted in the form of an MSA, is then provided to the Centers for Medicare & Medicaid Services (CMS).

As part of the Company’s normal course of business in serving the Medicare population, select Coventry employees are granted access to CMS databases in order to obtain certain data and information for purposes authorized by CMS. In 2005 and 2006, a small number of Coventry employees accessed the CMS Common Working File, later renamed the Medicare Beneficiary Database, for the purpose of determining whether Workers’ Compensation claimants were Medicare beneficiaries.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,858.52 -53.59 -0.32%
S&P 500 1,964.93 -5.02 -0.25%
NASDAQ 4,451.2160 +8.5180 0.19%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs