Health department for four Michigan counties overcharged low-income women for contraceptives

Oct 5 2006

The health department that serves Michigan's Alcona, losco, Ogemaw and Oscoda counties from 2003 through 2005 violated federal rules by overcharging low-income women for birth control and contraceptive supplies, according to a report conducted by the state Department of Community Health's Office of the Auditor General, the Bay City Times reports.

The District Health Department No. 2 purchases birth control and contraceptive supplies for the four counties with federal grants, local tax revenue, insurance companies and revenue from people who can afford to pay, according to the Times.

The report, which was sent to the health department's governing board, finds that the department charged more than 1,000 low-income women ages 15 to 44 at clinics in the counties full cost for birth control and contraceptive supplies.

Managers from the health department also falsified client records to cover up the charges, according to the report.

"Even though management was aware that improper chargers were being made, the violations continued for almost two years," James Hennessy, director of the state audit office, wrote in the report.

The District Health Department No. 2's board in July fired the department's former director, Dianna Schafer.

In addition, three board members -- Kevin Boyat and Carolyn Brummund of Alcona County and Clyde Soucie of losco County -- have since resigned.

Joyce Taylor -- who has served as acting director of the department since Schafer was put on administrative leave in April -- in an August letter to the state audit directors said that several modifications had been implemented and that the department planned to remedy the violations.

The board has scheduled a meeting with health department administrators for Oct. 17 and plans to discuss the state audit at its next meeting on Oct. 23.

Ogemaw County Commissioner Bev Scott said, "I can't stress enough the importance of getting to the bottom of this.

Someone is going to answer. The board has to be accountable" (Lounsbury, Bay City Times, 10/2). Schafer -- now director of the Sanilac County, Mich., Health Department -- declined to comment, the AP/Detroit Free Press reports (AP/Detroit Free Press, 10/2).