Lynne A. Valenti
Cabinet Secretary

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August 31, 2006

Firm Solicits Letters with False Information in Relation
to South Dakota Medicaid

PIERRE, S.D. - The Department of Social Services (DSS), Division of Medical Services, has recently been informed that a company called Digital Healthcare, Inc. has been soliciting information from South Dakota businesses with self-funded health plans. The letters being distributed by Digital Healthcare, Inc. request third party liability participation information from area businesses. The South Dakota Medicaid program has no relationship with Digital Healthcare, Inc. and therefore urges businesses to disregard their letters.
“The Department of Social Services recognizes the financial impact on South Dakota and its citizens when it comes to correctly determining the responsible party for payment of healthcare claims,” said Larry Iversen, Director of South Dakota Medicaid. “We have partnered with Health Management Systems (HMS) to locate third party liability for South Dakota Medicaid beneficiaries. We are pleased with HMS and are confident in their approach.” 

Any individual or place of business receiving letters from Digital Healthcare, Inc. should not construe the letter as an endorsement by the South Dakota Medicaid program. DSS has not permitted Digital Healthcare, Inc. to provide any services on behalf of the South Dakota Medicaid program. Businesses in South Dakota are neither obligated nor encouraged to provide Digital Healthcare, Inc. with any information.

For more information or to clarify anything received from Digital Healthcare, Inc., please contact the Department of Social Services, Division of Medical Services at 605-773-3495.