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Homestyle Direct: Accused Of Fraudulently Billing The Medicaid Program Of Nearly 1 Million Dollars
Kimberly, Idaho ( KMVT-TV / KTWT-TV ) A local home delivery food provider is under fire for fraud.
Kimberly based, Homestyle Direct, is a service that provides quality, fresh frozen meals to ailing and aging seniors through the Idaho Medicaid program.
The company is facing allegations of defrauding the Medicaid program of nearly 1–million dollars.
"They knowingly submitted or caused to be submitted false and fraudulent claims for home delivered meals through the Idaho Medicaid program."
On Monday, the United States Government and the State of Idaho filed a civil law suit against Homestyle Direct.
The lawsuit claims that the service knowingly filed and billed customers through the Medicaid system that were not compliant.
"There were basically 4 ways in which Homestyle Direct was submitting these fraudulent claims, or claims that were not in compliance with the Medicaid provider agreement."
Said Idaho US Attorney, Wendy Olson.
According to the US Attorney General's Office… The first was, billing for desserts that didn't qualify for reimbursement with the Medicaid rules.
Second, billing for meals delivered when the medicaid recipient was in an excluded place of service, such as an assisted living facility.
Third for billing for unauthorized meals.
"They were billing for meals that were delivered after the date of the recipient's death."
I attempted to reach out to Homestyle Direct on the current allegations their facing. A man answered saying that they currently working with an attorney and had no comment.
In total, the lawsuit claims that Homestyle Direct filed fraudulent claims totaling more than $888,000.
Those damages could be tripled under the false claims act and could reach as high as 2.6–million dollars.
The service delivers to many within our community.
I sat down with one of those users whose mother was a customer of Homestyle Direct in the past.
He gives his open opinion on their service and business practices.
"First of all, when the tax payers are paying for all of this and they taking money from people that deserve to have this and not give them the proper treatment... that's not right. But you can see they were coming up and not doing their job properly. If they are doing it I hope that they get caught, because its not right to the tax payers or to the people that actually need these meals. There were quite a few different clients that would go through the same thing as my mother."
Said, Daniel Shane Vanderpool.
At this point, the service has been notified of the allegations.
KMVT will continue to follow this case as it unfolds.