OIG Posts Advisory Opinion 07-03

On April 3, 2007, the OIG released the third Advisory Opinion for 2007, which addresses the use of rewards (i.e., airline mileage, cash rebates, and points towards purchases of specified items) from credit card issuers for the benefit of a residential health care facility and its employees. Specifically, under the proposed arrangement, there would be two potential benefits conferred through the credit card rewards and which were addressed in the Advisory Opinion. First, the OIG concluded that the anti-kickback statute was not implicated by virtue of a credit card issuer that did not have any affiliates that either directly or indirectly furnish services under the federal health care programs issuing rewards to the Requestor. Second, the OIG concluded that if the Requestor provided certain of these rewards to its bona fide employees, then the provision of theses benefi ts would fall within the statutory exception and regulatory safe harbor for employment arrangements.

For a full copy of the OIG's Advisory Opinion, click here.