Humana, CVS Health Corp.’s Aetna, Molina decline to renew relationships after a Bloomberg investigation revealed allegations of sexual harassment, assault, theft, unsafe work environments, and poor service quality.
Papa, a $1.4 billion startup that provides provide companion care services and support to Medicare Advantage, Medicaid, and commercial health plan members has taken a huge hit to its business. Several major US health insurers declined to renew their contracts for the upcoming year, including Humana Inc., CVS Health Corp.’s Aetna and Molina Healthcare Inc., based on extensive allegations of abuse from clients and employees.
In July, U.S. Special Committee on Aging Chair Sen. Bob Casey (D-PA) released a letter asking Papa to provide an explanation of its background screening system. The letter was in response to a Bloomberg report in May revealing that over 1,000 complaints had been submitted by Papa clients and caregivers in the last four years. Bloomberg reports that, to date, more than 1,200 confidential complaint reports have been filed over the past four years, with dozens of allegations of sexual harassment and assault, theft, unsafe work environments, and dissatisfaction with the service's quality. Casey said in a letter that this “raises serious concerns about the adequacy of Papa’s vetting process.”
Despite Papa performing extensive background checks on all new Papa Pals, including criminal and sexual assault history, Bloomberg reported an instance of a Papa employee who was hired despite having been convicted of felony drug charges and misdemeanor domestic assault, and was later charged with the assault and kidnapping of a Papa client.
To investigate Bloomberg’s claims, the committee gave Papa one month to provide information on how the company’s background check works, as well as any measures Papa has taken to improve the system. It also has requested a copy of all complaints against the company this year and an explanation of any trainings that might be required of employees, especially concerning medical privacy.
"The allegations of abuse by both Papa care workers and clients, as well as the lack of training and oversight to prevent and address future problems, raise deep concerns,” Casey said in a statement.
The insurers’ decisions not to renew partnerships with Papa is a big hit to the companies revenue model. Papa relies on contracts with health insurers, including Medicare Advantage, Medicaid and employer-sponsored plans. Insurers that partner with Papa offer its service to their plans’ members, typically for a certain numbers of free hours per year.