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Hartselle Rep. Ed Henry indicted on federal charges, accused of defrauding Medicare in a kickback scheme

MONTGOMERY, Ala. - Alabama Rep. Ed Henry of Hartselle has been indicted on federal medical fraud and anti-kickback charges stemming from an alleged scheme to falsely bill Medicare through a company he owns.

Henry retired from the legislature after the last session. He told WHNT News 19 he had "nothing left for Montgomery" after spearheading the effort to impeach Governor Robert Bentley, who resigned just as impeachment hearings began. Now, Henry has been indicted in Montgomery, where his alleged crimes took place.

The indictment alleges a complex, overbilling scheme where Henry’s company, MyPractice24, Inc.,  provided chronic care management services to elderly, seriously ill patients that included non-face to face consultations, arranging appointments and calling in prescription refills.

The indictment alleges that Henry and a Montgomery family practice doctor worked out a scheme where the practice would refer patients to Henry in exchange for kickbacks to the doctor.

The indictment alleges thousands of dollars overbilling from around of March 2016 to March 2017.

Henry charged the doctor substantially less than the previous firm that had the chronic care services contract, the lawsuit alleges, which enabled more patient referrals.

Meanwhile, federal rules require that patients in the chronic care management program pay a co-payment for services.

Henry’s company, the indictment claims, would bill Medicare for the chronic care services and falsely claim the patients were paying co-pays. The co-pays claim meant Henry’s company would receive a higher reimbursement from Medicare than if the patients didn’t pay the co-payment.

The indictment contains a number of charges from conspiracy to defraud and money laundering, violations of anti-kickback statutes, health care fraud and the government said it plans to seek forfeiture of funds Henry obtained during the alleged scheme, if he is convicted.

The indictment was issued May 31.