3A
THE DAILY ASTORIAN • MONDAY, NOVEMBER 20, 2017
Another $112 million in Medicaid errors estimated
By CLAIRE
WITHYCOMBE
Capital Bureau
SALEM — Oregon may
have erroneously paid, allo-
cated, inaccurately recorded or
over-claimed $112.4 million
in health care funds, accord-
ing to a letter Oregon Health
Authority Director Pat Allen
sent Friday to Oregon Gov.
Kate Brown.
That figure is on top of the
state’s estimated overpayment
of $74 million to coordinated
care organizations, or CCOs,
the state’s regional networks of
Medicaid providers, between
2014 and 2016.
Allen’s letter follows his
statement to legislators this
week that the state was likely
to see more processing prob-
lems come out of the state’s
health agency.
“...We note that this is likely
not an exhaustive and final list
of all known issues facing the
agency,” Allen wrote Friday.
“It is also likely that the details
of these issues will evolve as
we research them and con-
sult in more detail with subject
matter experts.”
Allen documented two
‘...We note that this is likely
not an exhaustive and final
list of all known issues
facing the agency.’
Oregon Health Authority Director Pat Allen
main types of issues: those
relating to $44.5 million in
possible payment errors; and
issues relating to the alloca-
tion of about $67.9 million
of funds, which range from
charging the wrong section of
the state’s budget to claiming
federal funds for certain pro-
cedures that cannot be paid for
with federal money.
Allen was careful to
note that all of those num-
bers are estimates, and sub-
ject to change based on deeper
research into the problems.
Two weeks ago, it came
out that the state had over-
paid CCOs by approximately
$74 million for certain patients
who were eligible for both
Medicaid and Medicare due to
classification errors.
But the state says $74 mil-
lion is still an estimate. Medi-
care, a program funded solely
by the federal government,
may share some of the tab.
The state has already
recouped $10.1 million of that
$74 million figure from CCOs.
In Oregon, about 1.1 mil-
lion people are on Medicaid,
which is funded jointly by the
state and the federal govern-
ment and covers the poor and
other qualifying groups. Medi-
care is the health care coverage
program for those 65 and older.
Allen said in the Friday let-
ter that the agency will cre-
ate an issue log to document
ongoing problems and provide
bi-weekly reports to the gover-
nor and state lawmakers.
The news also comes prior
to the completion of an OHA
audit by the secretary of state,
expected to be released by
early December.
Ethics commission denies Kitzhaber settlement Mom speaks on
behalf of teen
accused of wildfire
By PARIS ACHEN
Capital Bureau
SALEM — The Oregon
Government Ethics Commis-
sion on Friday voted 7-to-1
to deny a proposed settle-
ment in which former Gov.
John Kitzhaber agreed to pay
$1,000 to resolve ethics com-
plaints that he and first lady
Cylvia Hayes used their pub-
lic positions for profit, failed
to disclose conflicts of interest
and inappropriately accepted
gifts.
Kitzhaber on Wednesday
admitted he violated state eth-
ics laws on four occasions and
said he did so unintentionally.
The former governor said he
did not disclose a conflict of
interest related to Hayes’ paid
consulting contracts based on
the advice of his attorney at
the time.
Kitzhaber said he was sur-
prised by the commission’s
decision, because ethics com-
mission staff members had
proposed the terms of the
agreement.
News of the proposed set-
tlement spawned criticism that
the penalty was too lenient on
Kitzhaber’s missteps during
his role as the state’s highest
elected official.
Several ethics commission-
ers said they wanted to require
Kitzhaber to pay a more severe
fine given the former gov-
ernor’s high-profile posi-
tion. Accepting the settlement
could threaten the legitimacy
of the watchdog agency, they
asserted.
“That is really troubling to
me that we are excusing the
behavior of the highest official
of our state because he sought
counsel,” said Commissioner
Charles Starr.
“I think a larger fine is nec-
essary for our reputation as a
commission ... because any-
body serving at the highest
level has a greater responsibil-
ity to the public.”
Commission
Chairman
Dan Golden was the dissent-
ing vote in the rejection of
the settlement. He said the
$1,000 sanction was appropri-
ate, based on the commission’s
formula for calculating fines.
Kitzhaber had no prior ethics
violations, which factored into
Don Ryan/Associated Press
Former Gov. John Kitzhaber.
the recommended penalty, said
Ron Bersin, commission exec-
utive director.
The proposed settlement
“treated this former gover-
nor like we do other officials
at a higher level,” Golden
said. “There is no amount that
addresses the loss of credi-
bility and the things associ-
ated with the fall of this pub-
lic figure.”
Friday’s denial means that
ethics investigators will write
a report on the findings of
their probe of the allegations.
Once submitted to the com-
mission, the report becomes
a public record. Settlement
negotiations could continue
simultaneously.
The proposed settlement,
which Kitzhaber signed, stated
that he violated Oregon law
four times by benefiting from
frequent flier miles he accrued
from state travel between
2011 and 2013 and failing to
disclose conflicts of interest
related to Hayes’ consulting
company in 2013.
The company, 3E Strate-
gies, received paid consulting
contracts from 2011 to 2013.
In a statement Wednesday,
Kitzhaber said he accepted
full responsibility for the
violations.
“I apologize to Orego-
nians for failing to disclose a
potential conflict of interest,
although the ethical violations
at issue were wholly uninten-
tional,” Kitzhaber said.
“In the case reviewed by the
Ethics Commission, I did not
perceive a conflict of interest
because I understood the work
that Ms. Hayes was doing for
various non-profit organiza-
tions was not directed at try-
ing to shape or influence state
policy but, rather, to educate
people regarding the issues to
which she had committed her
professional career.”
Kitzhaber argued that he
also received advice from his
attorney that he did not need to
disclose a potential conflict.
Ethics Commissioner Ali-
son Kean said she would like
to see evidence of that legal
advice, which had not been
revealed to date as part of the
investigation.
The commission voted
unanimously in July to pur-
sue an official investigation of
the former governor and his
fiancée.
The agency in February
2015 had suspended a pre-
liminary review of three com-
plaints of alleged ethics vio-
lations against the couple,
triggered by pending state and
federal investigations.
PORTLAND — Those backlash and that the boy’s
close to a 15-year-old boy school-age siblings might
accused of starting a wild- face retaliation.
fire by tossing fireworks
The blaze, which started
Sept.
2,
along
a
f
o
r
c
e
d
trail in Ore-
‘This is a
gon’s sce-
evacua-
nic Colum-
trauma for tions, closed
bia River
an
inter-
him. It was state high-
Gorge says
way, and
he is from a
church-go- his mistake.’ s c o r c h e d
ing
large
more than
Mother of
Ukrainian
75 square
accused teen
miles.
family mor-
tified
by
H o o d
what happened.
River County District Attor-
The teen, from Vancou- ney John Sewell hasn’t
ver, Washington, has been released the boy’s name. He
charged with reckless burn- says confidentiality is nec-
ing and other offenses in essary to protect his parents.
Hood River Juvenile Court.
The case has sparked
His mother told the Ore- fierce debate over the
gonian/OregonLive
that potential consequences for
“this is a trauma for him” the boy, including whether
and “it was his mistake.” his family should be finan-
She said she fears a public cially liable for damages.
WANTED
Alder and Maple Saw Logs & Standing Timber
Northwest Hardwoods • Longview, WA
Contact: John Anderson • 360-269-2500
Nutcracker
The
Dancers with 50 piece symphony
Saturday
December 2 nd
2 pm and 7:30 pm
95 Hamburg 503-325-4341
www.englundmarine.com
MADDOX
Dance Studio
Sunday
December 3 rd
2 pm
AHS Auditorium
Tickets Liberty Theatre online and box office
389 S. MAIN AVE. · WARRENTON
503-861-1971 · maddoxdancers.com
Life member of Dance Educators of America | Certified to teach Dance Masters of AmericaMember Astoria-Warrenton Chamber of Commerce
ON THE RECORD
DUII
• At 11:09 a.m. Friday,
Marsha Waugh, 60, of Seaside,
was arrested by the Seaside
Police Department on Holla-
day Drive and charged with
driving under the influence of
intoxicants. Her blood alcohol
content was 0.22.
• At 1:55 p.m. Friday,
Susan Stacks, 60, of Nehalem,
was arrested by the Seaside
Police Department on Cooper
Street and S. Wahanna Road
and charged with DUII. Her
blood alcohol content was 0.19
Assault
• At 11:27 p.m. Satur-
day, Jesse Alan Peasley, 35,
of Astoria, was arrested by
the Clatsop County Sheriff’s
Office on the 1260 block of
Niagara Avenue and charged
with fourth-degree assault and
harassment. He allegedly was
involved in a physical domes-
tic dispute with a woman.
Sex abuse
• At 12:34 a.m. Sunday,
Matthew Stineman, 30, of
Astoria, was arrested by the
Astoria Police Department at
Annie’s Saloon strip club and
charged with second-degree
sex abuse and harassment. He
allegedly touched a woman
inappropriately while receiv-
ing a lap dance.
In observance of Thanksgiving
T HE D AILY
A STORIAN
will be closed
November 23 rd
Fishing Gear Clam Guns Rods & Reels
Outdoor Clothing Boots Rain Gear
Electronics Radios GPS Navigation
Maintenance Safety Flashlights Heating
Boating Accessories Power & Hand Tools
And So Much More!
THE
NEWSPAPER
WILL BE
DELIVERED
BY 9 A.M.
ON THURSDAY