P.M. BRIEFING : Nationwide Rejects Payment in Disputed Alzheimer’s Program : Alzheimer’s Claims Turned Down

Nationwide Insurance said today that it is holding to its decision to reject claims filed by an agency that offers therapy for Alzheimer’s disease victims in Ohio. A spokesman for the agency said the program will fold.

The company’s decision, announced in an unsigned statement, came after the company reviewed claims filed by Toledo-based Intergenerational Services Inc., a nonprofit agency that offers therapeutic services to Alzheimer’s patients in 66 nursing home in 15 northwest Ohio counties.

Columbus-based Nationwide, which administers the Medicare program in Ohio, contends that the activities that Intergenerational offers to Alzheimer’s patients are recreational and social, not psychotherapy. The services, in the company’s view, therefore do not qualify for even partial reimbursement under the government’s medical insurance program.

Intergenerational said today that it will go out of business because of Nationwide’s policy, because it cannot afford to continue operations during an appeal.

“Even though they are going to appeal Nationwide’s decision, they’re going to be phasing out the program,” Stan Collins, an agency spokesman, said. “They just can’t stay in business.”