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CDC Reports 45.9% Increase in California Drug Overdose Deaths

The U.S. government does not track death rates for every drug. However, the National Center for Health Statistics (NCHS) at the Centers for Disease Control and Prevention collects information on deaths involving many of the more commonly used drugs available through 2019 at a searchable database, called CDC Wonder. The NCHS also has 12 month-ending provisional data available by state and drug category.

The NCHS recently reported that drug overdose deaths rose by close to 30% in the United States in 2020, hitting the highest number ever recorded.

More than 93,000 people died from drug overdoses in 2020, according to provisional data released by the CDC’s National Center for Health Statistics. That’s a 29.4% increase from the 72,151 deaths projected for 2019.

In California, more than 9,500 people died from drug overdoses in 2020, up from 6,500 projected in 2019, a 45.9% increase.

“Overdose deaths from synthetic opioids (primarily fentanyl) and psychostimulants such as methamphetamine also increased in 2020 compared to 2019. Cocaine deaths also increased in 2020, as did deaths from natural and semi-synthetic opioids (such as prescription pain medication),” the NCHS said in a statement.

This is the highest number of overdose deaths ever recorded in a 12-month period, and the largest increase since at least 1999,” Dr. Nora Volkow, director of the National Institute on Drug Abuse (NIDA), part of the National Institutes of Health, said in a statement.

“These data are chilling. The COVID-19 pandemic created a devastating collision of health crises in America,” added Volkow.

As in recent years, inappropriate use of opioids was behind most of the deaths. The NCHS reported that overdose deaths from opioids rose from 50,963 in 2019 to 69,710 in 2020.

President Joe Biden on Tuesday nominated Dr. Rahul Gupta of West Virginia to serve as the administration’s top drug policy official. The former state health commissioner is slated to become the first physician to ever lead the White House Office of National Drug Control Policy, or ONDCP, if confirmed by the Senate. If confirmed, he will replace Regina LaBelle, acting director of the ONDCP , who is an Obama administration alum.

Gupta, a primary care doctor, went on to serve as the chief medical and health officer at March of Dimes, a maternal-and-child advocacy group, after his time working in the West Virginia state government.

Gupta received criticism from some drug reform advocates, who expressed disapproval of the closure of a needle exchange program in Charleston, West Virginia, under his leadership.

“Dr. Gupta brings firsthand experience as a medical doctor and public health official using evidence-based strategies to address the overdose epidemic in West Virginia,” the White House said in a statement. “We hope he will be confirmed by the Senate soon.”

Some say this nomination is a signal that government is looking to integrate medical solutions to reduce the national drug problem under Dr. Gupta’s leadership.

NCCI Publishes 2nd Edition of Medical Trends Dashboard

The Medical Indicators & Trends dashboard – Q4 2020 Edition is part of NCCI’s ongoing strategy to deliver more medical data insight.

It provides an interactive way to visualize state-specific information presented in the Q2 and Q3 2020 Medical Perspective reports and allows readers to download various summary tables.

More detailed state-specific Medical Data Reports can be found in State Insight, which is available to affiliates and regulators.

NCCI just announced the second edition of the dashboard.

It now includes summarized statistics for hospital outpatient services and ambulatory surgery centers, in addition to the key metrics it has been following, to better understand the direct and indirect impacts of COVID-19.

These include impacts to physician services, time to treatment, telemedicine, prescription drugs, and specific COVID-19 treated claim characteristics.

The data source used in this dashboard is NCCI’s Medical Data Call. The Medical Data Call represents data from most of the workers compensation premium written, which includes experience for large-deductible policies. Lump-sum settlements are not required to be reported. Also, self-insured data is generally not included.

While it is too early to fully assess the impact that the COVID-19 pandemic will have on the workers compensation system, this dashboard allows users to analyze state-specific medical treatment results during the spread of the pandemic.

Prison Inmate to Serve 5 More Years for EDD Fraud

51 year old Jason Vertz, of Fresno, and 45 year old Alana Powers, an inmate at the Central California Women’s Facility (CCWF) in Chowchilla, were each sentenced to five years and one month in prison for conspiracy to commit mail fraud and aggravated identity theft.

According to court documents, Vertz and Powers submitted several fraudulent unemployment insurance claims in Powers’ and other CCWF inmates’ names to the California Employment Development Department (EDD). Recorded jail calls and emails show that Powers and other inmates provided names, dates of birth, and social security numbers for inmates at CCWF to Vertz to submit the fraudulent claims. Shortly thereafter, the benefits were loaded onto debit cards that were mailed to the addresses the defendants provided.

The underlying applications for the claims stated that the inmates had worked within the prescribed period as maids, cleaners, fabrication welders, and other occupations, and that they were available to work, which was not true because they were incarcerated. The claims would have been denied if accurate answers had been given. EDD and the United States have suffered an actual loss of over $74,000 as a result of the fraud.

This case was the product of an investigation by the FBI, the California Department of Corrections and Rehabilitation Investigative Services Unit, and the California EDD. Assistant U.S. Attorneys Alexandre Dempsey and Joseph Barton are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Orange County Man Indicted $3M Fake Protective Gear Scam

An Orange County man is expected to be arraigned in federal court on an indictment charging him with defrauding victims who paid for COVID-related medical protective equipment that was never delivered, causing nearly $3 million in losses.

60 year old Christopher John Badsey, who lives Lake Forest, was arrested by FBI agents on July 8 without incident. He is charged with four counts of wire fraud and two counts of money laundering. He was arraigned in United States District Court in downtown Los Angeles.

According to an indictment returned by a federal grand jury on July 7, Badsey falsely represented that he had access to millions of boxes of medical-grade nitrile gloves through his Irvine-based company, First Defense International Security Services Corp. (FDI)

This type of personal protective equipment was in high demand and short supply during the COVID-19 pandemic.

Badsey allegedly entered into contractual agreements with victims, whom he required to provide a money deposit to inspect the gloves before delivery.

After receiving the deposits, Badsey allegedly instructed victims to travel to the Los Angeles area, where he claimed the gloves were stored in a warehouse. But when victims attempted to visit the warehouse, Badsey and other FDI employees allegedly provided excuses as to why the gloves could neither be inspected, nor delivered, to the victims.

Nitrile gloves were never provided to the victims, and Badsey is alleged to have absconded with the deposit money totaling nearly $3 million. After obtaining the victims’ wire deposits, Badsey and others are believed to have used those funds to make lavish purchases for their personal benefit.

If convicted of all charges in the six-count indictment, Badsey would face a statutory maximum sentence of 100 years in federal prison.

Orange County Man Indicted $3M Fake Protective Gear Scam

An Orange County man is expected to be arraigned in federal court on an indictment charging him with defrauding victims who paid for COVID-related medical protective equipment that was never delivered, causing nearly $3 million in losses.

60 year old Christopher John Badsey, who lives Lake Forest, was arrested by FBI agents on July 8 without incident. He is charged with four counts of wire fraud and two counts of money laundering. He was arraigned in United States District Court in downtown Los Angeles.

According to an indictment returned by a federal grand jury on July 7, Badsey falsely represented that he had access to millions of boxes of medical-grade nitrile gloves through his Irvine-based company, First Defense International Security Services Corp. (FDI)

This type of personal protective equipment was in high demand and short supply during the COVID-19 pandemic.

Badsey allegedly entered into contractual agreements with victims, whom he required to provide a money deposit to inspect the gloves before delivery.

After receiving the deposits, Badsey allegedly instructed victims to travel to the Los Angeles area, where he claimed the gloves were stored in a warehouse. But when victims attempted to visit the warehouse, Badsey and other FDI employees allegedly provided excuses as to why the gloves could neither be inspected, nor delivered, to the victims.

Nitrile gloves were never provided to the victims, and Badsey is alleged to have absconded with the deposit money totaling nearly $3 million. After obtaining the victims’ wire deposits, Badsey and others are believed to have used those funds to make lavish purchases for their personal benefit.

If convicted of all charges in the six-count indictment, Badsey would face a statutory maximum sentence of 100 years in federal prison.

Owner of Trucking Companies Faces PPP Loan Fraud Charges

The owner of trucking companies in the Inland Empire and elsewhere in California, who was out on bond awaiting trial in a separate federal criminal case, was arrested on a criminal complaint alleging he fraudulently obtained more than $667,000 in Paycheck Protection Program (PPP) COVID-19 pandemic relief funds.

62 year olld Carl Bradley Johansson, who lives in Newport Beach, was arrested and is charged with one count of bank fraud and one count of conspiracy to commit bank fraud.

Johansson was on pretrial release in a separate case that remains scheduled to go on trial on September 14. In that matter, Johansson is alleged to have schemed to defeat federal transportation laws by ordering the illegal repair of an oil tanker that resulted in a fatal explosion in 2014, and to have unlawfully avoided the payment of at least $298,562 in federal income taxes from 2012 to 2017.

According to an affidavit filed with the complaint, in April 2020, under Johansson’s direction, the Ontario-based trucking company Western Distribution LLC applied for a PPP loan in the amount of $436,390. Johansson’s son was listed as the company’s owner on the loan application and the loan application was approved.

Under Johansson’s direction, Western Distribution LLC immediately spent its PPP funds in May and June 2020, in large part on expenses unrelated to its payroll. Rather than use the funds to keep the company’s employees on staff, Johansson laid off most of the company’s employees, but rehired many of them in late 2020.

Also in April 2020, a different Johansson-controlled trucking company – a Merced County-based business identified in the affidavit as “Company A” – applied to another federally insured bank for its own PPP loan in the amount of $286,505, according to the affidavit. Johansson’s 85-year-old mother was listed as Company A’s owner on its PPP loan application, which was approved in the amount of $286,500.

To create the impression that Western Distribution LLC had spent more of its PPP loan on its payroll than it actually did, in September 2020 Johansson moved 21 of Company A’s employees onto Western Distribution LLC’s payroll, even though those employees never worked for Western Distribution, LLC, the affidavit alleges. This allegedly occurred just before the company’s 24-week window for spending its PPP funds closed.

As a result of this ruse, Western Distribution LLC could falsely claim on its PPP loan forgiveness application in January 2021 that the company had met the requisite threshold of spending at least 60 percent of its PPP loan on payroll, according to the affidavit.

In March 2021, Johansson allegedly caused Western Distribution LLC to repeat the same fraudulent representations concerning its employee lists and payroll numbers when the company submitted a second PPP loan application, this time for $231,527. The second loan application was approved.

The total loss alleged in this case is approximately $667,917.

If convicted of both charges, Johansson would face a statutory maximum sentence of 70 years in federal prison.

15 States Withdraw Objections to $4.2B Purdue Opiod Settlement

Fifteen states that led the effort to block a controversial bankruptcy plan for OxyContin-maker Purdue Pharma have abandoned the fight.

That’s according to court documents reviewed by NPR and filed by a mediator late Wednesday as part of a federal bankruptcy proceeding in White Plains, N.Y.

Among the states that have agreed to sign on to the bankruptcy deal are Massachusetts and New York, whose attorneys general had mounted fierce legal opposition to the agreement.

The other states now abandoning their opposition to the deal are: Colorado, Hawaii, Idaho, Illinois, Iowa, Maine, Minnesota, Nevada, New Jersey, North Carolina, Pennsylvania, Virginia and Wisconsin.

According to the mediator, nine states have yet to agree to the Purdue Pharma bankruptcy plan. They include Connecticut, where the company is headquartered, as well as California, Delaware, Maryland, New Hampshire, Oregon, Rhode Island, Vermont and Washington. The District of Columbia also hasn’t agreed to the deal.

The negotiations were difficult and hard-fought, with the outcome uncertain,” said federal bankruptcy Judge Shelley C. Chapman in the legal filing.

The settlement plan, which is now all but certain to be finalized next month, would shelter members of the Sackler family, who own Purdue Pharma, and many of their associates from future opioid lawsuits.

In return, the Sacklers have agreed to give up ownership of the bankrupt drug company. They will also pay out roughly $4.2 billion from their private fortunes in installments spread over the next decade.

According to the mediator’s report, the Sacklers have now agreed to boost their settlement payment by a relatively modest amount – roughly $50 million.

The deal also includes a “material expansion” of the public document repository already created under the settlement plan that aims to provide some transparency about Purdue Pharma’s role in the opioid epidemic.

Purdue Pharma has pleaded guilty twice to federal criminal charges related to its opioid marketing practices, first in 2007 and again last year.

The Sacklers have never faced charges. Under this deal, they will admit no wrongdoing and will remain one of the wealthiest families in the U.S.

B of A Abruptly Ends Lucrative Debit Card Deal with EDD

Bank of America, which since 2010 has had an exclusive contract with the state to deliver unemployment benefits through prepaid debit cards, wants to end the contract – even though the Employment Development Department just renewed it for another two years.

The news, first reported by ABC 7 in San Francisco, comes about a month after a federal judge – as part of a class-action lawsuit first reported by CalMatters – ordered Bank of America to stop using an automated fraud filter that blocked tens of thousands of legitimate claimants from accessing their benefits after they reported suspicious account activity.

The bank said it received 230,000 claims of debit card fraud from October 2020 through March 2021.

Bank of America’s desire to end the contract is striking, given that both the bank and the state are paid merchant fees whenever an unemployment debit card is swiped. EDD has pocketed millions in fees amid the pandemic: It earned more than $47 million from March 2020 through April 2021, even though the claims of more than 1.1 million jobless Californians remain in limbo.

However, Bank of America told state lawmakers it lost “hundreds of millions” of dollars on the contract last year as it scrambled to respond to California’s rampant unemployment fraud, which experts say could total upward of $31 billion.

Bank of America: “We have advised the state that we would like to exit this business as soon as possible.

Ultimately, the cost of California’s unemployment fraud will likely fall on taxpayers. And businesses will likely shoulder the staggering weight of California’s unemployment insurance debt, which experts estimate could reach $26.7 billion by the end of the year.

Meanwhile, EDD is still struggling to answer the millions of calls it receives each week – so much so that California’s 80 state assemblymembers were just given the green light to hire two staffers each to handle EDD problems.

Study Shows MTUS Low Back Pain Guideline Improves RTW

The United States spends more on health care than any other country, with costs approaching 18% of the gross domestic product (GDP).

Overtreatment and low-value care cost the U.S. healthcare system between $75.7 and $101.2 billion annually. Despite the associated high cost, unnecessary or ineffective care appear to be on the rise.

A search of peer-reviewed and “gray” literature from January 2012 to May 2019 focused on the 6 waste domains previously identified by the Institute of Medicine and Berwick and Hackbarth: failure of care delivery.

Computations yielded the following estimated ranges of total annual cost of waste: failure of care delivery, $102.4 billion to $165.7 billion; failure of care coordination, $27.2 billion to $78.2 billion; overtreatment or low-value care, $75.7 billion to $101.2 billion; pricing failure, $230.7 billion to $240.5 billion; fraud and abuse, $58.5 billion to $83.9 billion; and administrative complexity, $265.6 billion.

One strategy to promote quality, value-based care is applying evidence-based medicine (EBM) to help guide treatment decisions. EBM integrates medical research with clinical expertise and patient values to support decision making based on the best available evidence.

How well does that work? Researchers attempted to answer that question in a study recently published in the journal PLOS, “Guideline adherence and lost workdays for acute low back pain in the California workers’ compensation system.

In the U.S., state workers’ compensation (WC) systems have developed or adopted treatment guidelines to promote evidence-based care for occupational injuries. The most common occupational injury is back strain, and occupational stressors are thought to contribute to low back pain (LBP). The point of this new study was to quantify the influence of adherence to guideline-recommended interventions in the first week of treatment for an initial low back pain (LBP) injury on lost workdays.

In a retrospective cohort of California’s workers’ compensation claims data from May 2009 to May 2018, 41 diagnostic and treatment interventions were abstracted from the medical claims for workers with acute LBP injuries and compared with guideline recommendations. Lost workdays within 1-year post-injury were compared by guideline adherence. 59,656 workers met the study inclusion criteria.

The reviewers concluded that when workers received guideline-recommended interventions, they typically returned to work in fewer days. The majority of workers received at least one non-recommended intervention, demonstrating the need for adherence to guideline recommendations. Fewer lost workdays and improved quality care are outcomes that strongly benefit injured workers.

With that being said, the study disclosed in its Conflict of Interest Statement that authors Gaspar and Wizner are employed by MDGuidelines, which is the sole proprietor of ACOEM guidelines. Hegmann is Editor-in-Chief of the ACOEM guidelines.

LA County COVID Cases Increasing Over Last Two Weeks

The number of new COVID-19 infections in Los Angeles County again pushed over the 500 mark on Wednesday, July 7, while the number of people hospitalized reached nearly 300, prompting health officials to promote a community-outreach program aimed at spreading the word about infection-control efforts.

The county has been seeing a rise in daily COVID-19 infections over the past two weeks, reporting more than 600 new cases on Saturday – nearly triple the numbers being reported in mid-June.

The Daily News reported that on Wednesday, the county reported 515 new infections, although some of those cases could be the result of a reporting backlog from the long holiday weekend. The new cases pushed the cumulative countywide total during the pandemic to 1,253,536.

According to state figures, there were 296 people hospitalized due to COVID in the county, up from 275 on Tuesday. There were 71 people in intensive care, down from 73 a day earlier. While hospitalization numbers have been increasing slowly, they are still a fraction of the four-digit figures seen during the county’s winter surge of infections.

Health officials have said the county’s recent increases in daily infections and testing-positivity are being fueled by the rise in COVID-19 variants, particularly the highly contagious “Delta” variant. They added that with 4 million residents in L.A. County still unvaccinated – including 1.3 million children who aren’t eligible for shots – there is enough risk for the variant to pose a significant threat.

“Delta” has also become California’s most identified strain of the coronavirus, accounting for 35.6% of the variants analyzed in June, a steep increase from May, when the number was just 5.6%, according to the California Department of Public Health.

As of last week, more than 10.4 million doses of COVID-19 vaccine had been administered in the county. The latest numbers show that 59% of residents age 16 or older are fully vaccinated, while 68% have received at least one dose. The numbers are higher among seniors, with 76% of people 65 and older fully vaccinated, and 87% with at least one dose.

The weekly pace of vaccinations, however, has slowed from an winter/spring high of about 500,000 doses per week in the county to now less than 60,000. Vaccinations continue to lag among the Black community, which is also bearing the brunt of new COVID infections and hospitalizations.

And now the Seattle Times reports that the gamma variant, on the other hand, is associated with higher hospitalization rates and increased breakthrough infections. The variant, also known as P.1, now accounts for 16% of the cases in Washington state and is the fastest-rising variant in the state.