County Gets Extension on Medicare Settlement

In the first glimmer of good news since the Medicare scandal erupted several months ago, the U.S. attorney’s office has tentatively agreed to give Ventura County two more years to pay off a $15.3-million settlement officials said Wednesday.

Under an arrangement negotiated by Supervisor John Flynn and county Counsel James McBride, the county will be able to pay the federal government over five years instead of three. That would lower its annual payment from $5.1 million to $3 million, a difference that might save several major public works projects that could have been delayed or scrapped, Flynn said.

The county agreed Aug. 3 to pay $15.3 million to settle a civil lawsuit that alleges its mental health department submitted fraudulent health claims dating back to 1990. The U.S. attorneys office became involved after a whistle-blower alerted the federal government to prohibited billing practices.

The Board of Supervisors will hold a closed-door meeting Tuesday to discuss the issue. Flynn said he will urge his colleagues to vote for the longer payment period because it could allow the county to avoid dipping into its reserve funds.

That is important, Flynn said, because a depleted reserve account could hurt the county’s bond rating, making it more expensive to borrow money for future building projects.