Former CMS head to pay $10,000 for misuse of funds

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The former head of the Centers for Medicare & Medicaid Services will pay almost $10,000 to settle allegations of inappropriate use of funds.

Despite continued denial of accusations that he inappropriately claimed certain travel expenses while seeking private sector employment, former Administrator Thomas A. Scully agreed to the CMS payback deal. The alleged actions occurred while he was leading the agency.

Scully said he had obtained a waiver from then-Department of Health and Human Services Secretary Tommy G. Thompson to conduct an employment search while still acting as CMS administrator. Senate Finance Committee Chairman Charles E. Grassley (R-Iowa) called the waiver from Thompson inappropriate. The White House has since prohibited such waivers.