HHS Fines California Seminar Company

WASHINGTON, April 8, 2003 –- An administrative law judge has levied a penalty of more than $1 million against a California seminar company that allegedly created the false impression that its courses on Medicare reforms are mandated by the government.

The Department of Health and Human Services (HHS) said that U.S. Seminar Corp., of La Mesa, sent more than 362,000 letters to health care providers in 2001 and 2002 that deceived recipients into thinking the seminars are endorsed by the Medicare program.

The mailings used such phrases as "Formal Notice" and "Compliance Required" to make it appear that recipients had to take the course or risk governmetn sanctions.

When the company's telephone representatives called providers, HHS said the callers claimed they were Medicare representatives and told providers attendance at the private seminars was required by Medicare.

HHS said the company has used the unlawful marketing techniques for more than six years despite several warnings from the inspector general to stop.

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