County OKs Extended Medicare Settlement
VENTURA — The county Board of Supervisors on Tuesday approved a deal with the U.S. attorney’s office to take two extra years to pay off a $15.3-million settlement stemming from the federal government’s audit of the county’s Medicare billing practices going back nearly a decade.
It is a more expensive plan but one officials say makes good financial sense.
“It’s the first good news we’ve had in a long while,†Supervisor John Flynn said after an hourlong closed session where the matter was voted on. “We’re not completely out of the woods, but we’re beginning to see the light.â€
But not all county officials are convinced that the five-year repayment plan would keep projects and programs--including funding for the homeless and a new juvenile hall--off the chopping block.
After county attorneys finalize the new settlement, the annual payment will go from $5.1 million to $3.12 million. Based on a variable interest rate, ranging from 4.5% to 7.3% annually, the county will pay about $300,000 extra in interest over the five years.
“It’s still a $3-million annual loss and it has to come from somewhere,†Auditor/Controller Thomas Mahon said.
Although Mahon is drafting a plan on how to cover the debt, supervisors will ultimately decide which funds to dip into to make the payments, he said.
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