
By Harold Morse
Star-Bulletin
Wednesday, May 15, 1996
"We have no comment at this time about the Caremark case," Kim said recently when asked for an update.
The state said in August it would investigate 20 or more local doctors for Medicaid fraud as part of its probe of Caremark International Inc., which was alleged to have offered illegal kickbacks to Hawaii physicians.
Margery Bronster, state attorney general, said then the Northbrook, Ill., home health care company paid the state more than $450,000 in fines and restitution to settle kickback charges. Caremark said it paid the fines to the state as part of a $161 million settlement with the federal government, which began investigating the kickback scheme in 1991.
Caremark entered guilty pleas in June 1995 to charges of mail fraud but did not plead guilty to the more serious charge of offering illegal kickbacks, allegations that involved Caremark's home health care unit.