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Thursday, Apr 2 2015

Full Issue

Sen. Bob Menendez Indicted On Bribery, Conspiracy Charges

The indictment charges the New Jersey senator with intervening on behalf of a Florida eye surgeon, who also was a high-dollar contributor, to help resolve Medicare billing disputes. It also alleges he pushed a port security deal in which the surgeon had a financial interest and helped the doctor's foreign girlfriends obtain travel visas.

The indictment, the first federal bribery charges against a sitting senator in a generation, puts Mr. Menendez鈥檚 political future in jeopardy. He faces a possible sentence of 15 years in prison for each of the eight bribery counts. ... The charges revolve around Mr. Menendez鈥檚 relationship with Dr. Salomon E. Melgen, a wealthy Florida eye surgeon and political benefactor. (Apuzzo, 4/1)

According to the indictment, between January 2006 and January 2013 Menendez accepted close to $1 million in 鈥渓avish gifts and campaign contributions鈥 from Melgen in exchange for helping Melgen in contractual and Medicare billing disputes worth tens of millions of dollars to the doctor. (Serrano, Phelps and Mascaro, 4/1)

Mr. Menendez allegedly pushed the Centers for Medicare and Medicaid Services to get a more favorable ruling in Dr. Melgen鈥檚 Medicare billing dispute. Beginning around June 2009, the indictment said, Mr. Menendez and his staff began advocating on behalf of Dr. Melgen. Mr. Menendez and his staff met directly with the Department of Health and Human Services and CMS, according to the complaint. In July 2009, Mr. Menendez had a call with the acting principal deputy of CMS about the matter, according to the complaint. (Grossman and Dawsey, 4/1)

Menendez allegedly pressured federal health officials to drop an $8.9 million fine against the eye doctor for overbilling Medicare, used his influence to advance a lucrative port-security deal in the Dominican Republic for a firm owned by Melgen, and threw his weight around to help three of Melgen鈥檚 foreign girlfriends get help entering the United States. (Caputo, 4/1)

In early June 2012, Melgen issued a check for $300,000 for the Majority PAC. ... That same month, the senator went to bat for Melgen again, this time on behalf of his eye clinics, with top officials in the Department of Health and Human Services who oversaw Medicare reimbursements and whose auditors had concluded Melgen had overbilled the federal health program for eye medications he used in his clinic. Menendez, using talking points created by Melgen鈥檚 lobbyist, talked by phone on July 2 to the acting administrator at the Centers for Medicare and Medicaid Services about her agency鈥檚 policy for reimbursing physicians such as Melgen, who used a single vial of medication multiple times, sometimes for multiple patients. ... The senator next had his staff arrange a meeting with then-HHS Secretary Kathleen Sebelius, which occurred in August 2012 at the behest of Sen. Harry M. Reid (D-Nev.), who was majority leader at the time. (Kane and Leonnig, 4/1)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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