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Berkshire Eagle - False Health Claims Alleged
By Bershire Eagle Staff - 3/27/2010

PITTSFIELD -- A former Pittsfield man and a woman from Tampa, Fla. face arraignment in Pittsfield next month on charges in connection with allegedly making false claims to MassHealth, causing the program to pay more than $300,000 in benefits to which they were not entitled.

Michael Ferdyn, 46, formerly of Pittsfield, now of Tampa, and Jeannie Edwards, 45, of Tampa, are charged with one count each of Medicaid false claims and larceny by false pretenses.

The pair was indicted by a Berkshire County grand jury on Thursday and will be arraigned on Monday, April 12, in Berkshire Superior Court.

Investigation began in 2008

The alleged discrepancies in medical claims were first discovered by the Bureau of Special Investigations from the office of state Auditor A. Joseph DeNucci. The matter was then referred to Attorney General Martha Coakley's office, which began an investigation of the couple's activities in 2008.

According to an incident report, while living in Massachusetts, Ferdyn, a quadriplegic, received legitimate assistance through the MassHealth Personal Care Attendant (PCA) program, a benefit designed to allow people with long-term disabilities to live independently at home.

Through the program, eligible MassHealth members are given funds and authority to hire and supervise a personal care attendant to help with activities of daily living such as bathing, eating, toileting and moving about inside the home.

PCA program fast-growing

A spokesman from the state auditor's office said that the PCA program is a fast-growing one in Massachusetts, recently accounting for an estimated $330 million in Medicaid expenditures and serving approximately 16,000 individuals.

"The intent is a good one, to allow people to remain in their homes. The problem that the Bureau of Special Investigations has found is [the program] is vulnerable to fraud and abuse," said Glenn Briere, spokesman for DeNucci's office.

According to the attorney general, Ferdyn permanently moved to Florida in December 2003 to reconnect with Edwards, a former girlfriend. The attorney general's office said Ferdyn kept his Pittsfield address and was not eligible to receive PCA services under the Medicaid plan in Florida. So he allegedly continued to submit claims to MassHealth for PCA services being provided by Edwards.

Edwards worked full time as the director of nursing at a Florida nursing and rehabilitation facility from July 2004 until the end of May 2005. She and Ferdyn reportedly submitted claims to the MassHealth PCA program for dates and times when Edwards was working at this facility.

Authorities further allege that from January 2004 through December 2009, both Ferdyn and Edwards made false statements to MassHealth, stating that Edwards was providing PCA services for Ferdyn at his Pittsfield residence.

MassHealth requires that all members submit annual applications to determine if they qualify for benefits such as the PCA program; one of the requirements of eligibility is proof of residence.

Authorities allege that Ferdyn submitted eligibility forms to MassHealth on an annual basis between 2003 and 2009. In all submissions, Ferdyn fraudulently listed his residency as Massachusetts, while he was actually living in Florida.

Despite the fact MassHealth requires annual eligibility reviews, authorities say that for five years, both Edwards and Ferdyn completed and signed fraudulent timesheets every two weeks and submitted them to MassHealth for payment, allowing Edwards to receive more than $300,000 for PCA services she reportedly gave to Ferdyn.

The case is being prosecuted by Massachusetts Assistant Attorney General Nancy Maroney and was investigated by Meaghan Fogaren, both of Attorney General Martha Coakley's Medicaid Fraud Division. The Massachusetts Bureau of Special Investigations of the Office of the State Auditor, the Boston office of the U.S. Department of Health and Human Services Office of Inspector General, and the Florida Attorney General's Medicaid Fraud Control Unit also assisted with the investigation.

Mailing Address:oseph DeNucci  P.O. Box 600252  Newton MA 02460
Office Location: 259 Walnut St   Newton, MA 02460   Phone: 617.630.0600  Fax: 617.630.0625  
E-Mail: HDQ@JoeDeNucci.com