Home Local News Feds raid MCS’ Hato Rey headquarters
Issued : Thursday, October 13, 2011 05:05 PM
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Feds raid MCS’ Hato Rey headquarters

By CB Online Staff

Federal agents executed search warrants at the headquarters of health insurer Medical Card Systems (MCS) in the heart of Hato Rey’s Golden Mile on Thursday morning as part of an investigation into insurance program fraud.

U.S. Attorney Rosa Emilia Rodriguez indicated that the probe was targeting potential Medicare fraud, and was not tied to the Mi Salud program.

José Durán, president of the company’s Mi Salud unit MCS-HMO, said federal agents met with company officials in the legal department. He said he had not received information about what authorities were looking for.

The agents included personnel from the FBI, the Secret Service, the U.S.Food & Drug Administration’s Office of the Inspector General and the U.S. Health & Human Services Department. Local police were supporting the operation.

Agents were said to be carrying out search warrants on at least three floors of the MCS building that house the legal, human resources and information technology departments.

MCS officials expressed surprise over the raid.

Maritza Munich, chief legal officer at the insurer, said the company’s standing policy is to cooperate with any investigation.

She said the federal agents were gathering information and files during the operation.

“The visit surprised us because it is the policy of MCS to fully cooperate with any type of investigation. If authorities need any type of information from us we would have provided it voluntarily and cooperated fully with the investigation as we always have,” Munich said.

“We still don’t have details on what this investigation is aimed at, but we are providing the requested information.”

Island Health Secretary Lorenzo González said he had no knowledge of the federal probe.

“I don’t know anything about it,” he said.

MCS is in the process of exiting the island government’s Medicaid-funded Mi Salud program. Fortuño administration said it stripped MCS-HMO of its contract due to payment delays to providers and breach of contract issues. The company counters it decided to leave Mi Salud amid stalled negotiations over new terms in a money losing business.

MCS has said it will focus on its other business lines, which includes Medicare Advantage coverage.

Triple-S has been selected to take over the five Mi Salud regions opened by the looming exit of MCS-HMO from the Puerto Rico government-funded health care coverage.

Triple-S suffered a massive data breach last year, which leaked the information of more than 400,000 of its customers. The breach was traced to a former employee who was then working at MCS.

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