Federal raid threatens supplemental insurance for thousands - Los Angeles Local News | FOX 11 LA KTTV

Federal raid threatens supplemental insurance for thousands

Posted: Updated:
ATLANTA -

Federal agents raided the Florida headquarters of Universal Health Care, shutting down the offices and leaving hundreds of employees out of work.  The move means 7,500 Georgians could potentially be without supplemental health insurance.

This is a government-approved Medicare insurance company.  If you are signed up for their supplemental health plan, this might be the first time you're hearing that your plan is gone.  The government shut down the company over allegations of insurance fraud.

The FBI and agents with the U.S. Department of Health and Human Services swept into the St. Petersburg office on Thursday. For two days, they pulled out boxes of files and computer information.  

Universal Health Care sold government-approved "Medicare Advantage" plans. It included supplemental coverage for senior citizens with Medicare.

Company founder Dr. Akshay Desai told FOX News he denies any wrongdoing.  He said, "The company has and is continuing to behave in an ethical and legal fashion."

In the meantime, this is a big, expensive problem for people like Larry Krassner.  He finds peace in his Hall County backyard in between taxing chemotherapy treatments.   But on April 1, he got an unsettling call at home telling him that the treatment center wanted to know how he planned to pay for his next round of chemo.

Mr. Krassner is covered by Medicare, but he used Universal Health Care's supplemental coverage to fill in some of the financial gaps.  He had just met his out-of-pocket maximum of $6,700, which meant his next treatment would be 100 percent covered.  Now, he says, he has to start all over.

You see, because he had to sign up with a new insurance plan on April 1, he won't be covered until May.  Had he signed up one day before, he would have had coverage.   He says he has never received any notice from his healthcare provider or Medicare services.

And what's more, when he does have full coverage next month, he has to pay out of pocket $6,700 one more time.   And like thousands of other Georgians, that puts a pinch in a fixed income.  

On Tuesday night, the FOX 5 I-Team was contacted by The Centers for Medicare and Medicaid Services.  They tell us they've negotiated with a new provider to cover Mr. Krassner now-- not making him wait until next month. It's good timing as he just found out about this issue on Monday, and his next chemo treatment is today.   What we don't know yet is whether he'll have to pay out of pocket $6,700 again.

  • I-Team Story ArchiveMore>>

  • RAW VIDEO: I-Team's undercover visit to Boggs Mountain

    RAW VIDEO: I-Team's undercover visit to Boggs Mountain

    Thursday, April 24 2014 1:43 PM EDT2014-04-24 17:43:54 GMT
    Trial is set May 12 in Rabun County for a case uncovered by the Fox 5 I-Team that continues to trouble animal lovers across the country. Lowanda "Peanut" Kilby faces 60 counts including theft by taking, theft by deception and racketeering.
    Trial is set May 12 in Rabun County for a case uncovered by the Fox 5 I-Team that continues to trouble animal lovers across the country. Lowanda "Peanut" Kilby faces 60 counts including theft by taking, theft by deception and racketeering.
  • Identity Protection Bill Signed into Law

    Identity Protection Bill Signed into Law

    Thursday, April 24 2014 11:28 AM EDT2014-04-24 15:28:15 GMT
    With a stroke of the governor's pen, a new law that could help protect your identity now goes into effect. Republican State Senator John Albers says his bill, now law, will prohibit public disclosure of private information in court documents.
    With a stroke of the governor's pen, a new law that could help protect your identity now goes into effect. Republican State Senator John Albers says his bill, now law, will prohibit public disclosure of private information in court documents.
  • Fox 5 I-Team

    Cheap vs. Frugal

    Cheap vs. Frugal

    Wednesday, April 23 2014 9:15 AM EDT2014-04-23 13:15:25 GMT
    There is nothing wrong with saving a buck, but can you cross the line? There is a difference between being cheap and being frugal.
    There is nothing wrong with saving a buck, but can you cross the line? There is a difference between being cheap and being frugal.
  • Contact the FOX 5 I-Team

    * denotes required fields

    We're sorry, but only one entry is allowed per person.
    Thank you for your continued interest.

    Thanks for contacting FOX 5.  To reach our newsroom by phone, please call (404) 898-0100.

  • Good Day ArchiveMore>>

  • Hidden Treasures: April 24

    Hidden Treasures: April 24

    Thursday, April 24 2014 9:32 AM EDT2014-04-24 13:32:15 GMT
    We asked you to share your hidden treasures with us, and boy, did you ever! We got dozens of emails from viewers who wanted to know what the items they had stashed away are worth.
    We asked you to share your hidden treasures with us, and boy, did you ever! We got dozens of emails from viewers who wanted to know what the items they had stashed away are worth.
  • Weekend Event Celebrates "Anything With A Motor In It"

    Weekend Event Celebrates "Anything With A Motor In It"

    Thursday, April 24 2014 9:10 AM EDT2014-04-24 13:10:13 GMT
    If you spend your days fixing up cars, reading car magazine, and dreaming about that car you've always wanted...you might be a car enthusiast.
    If you spend your days fixing up cars, reading car magazine, and dreaming about that car you've always wanted...you might be a car enthusiast.
  • Safely restrain pets with the PupSaver

    Safely restrain pets with the PupSaver

    Thursday, April 24 2014 8:07 AM EDT2014-04-24 12:07:29 GMT
    Most people treat their dogs just like their children. However, when it comes to dog safety in the vehicle, many drivers are buckling the children up but not safely restraining their pets.
    Most people treat their dogs just like their children. However, when it comes to dog safety in the vehicle, many drivers are buckling the children up but not safely restraining their pets.
Powered by WorldNow

KTTV FOX 11
1999 S. Bundy Dr.
Los Angeles CA 90025

Main: (310) 584-2000
News Tips? (310) 584-2025

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices