MONTGOMERY, Ala. (AP) — An Alabama lawmaker has been indicted in what prosecutors say was a scheme to pressure the state’s largest insurance companies into covering treatments at a chain of diabetes clinics where he had a financial interest.
Federal court documents show that Republican Rep. Randy Davis of Daphne was indicted Tuesday on conspiracy to commit bribery and other charges.
The indictment alleges there was a conspiracy to pressure Blue Cross and Blue Shield of Alabama to cover infusion treatments at Trina Health clinics even though the Centers for Medicare and Medicaid Services said there was no evidence the outpatient insulin therapy treatment improved outcomes.
Prosecutors said that Davis lobbied Blue Cross and Blue Shield of Alabama to cover the treatments at and spoke in favor of a bill to require the coverage, even though he had received finder’s fees for recruiting investors to Trina.
The legislation did not pass.
Davis did not immediately return an email Wednesday seeking comment.
Davis is the second lawmaker indicted in the matter.
Republican state Rep. Jack D. Williams of Vestavia Hills, lobbyist Marty Connors and health executive G. Ford Gilbert of California were arrested earlier this year and charged with conspiracy to commit bribery.
The charges relate to payments that prosecutors said Gilbert paid to another lawmaker.
Prosecutors say Gilbert paid then-state Rep. Micky Hammon to promote the insurance bill that would benefit his business. Hammon had a small ownership interest in a Trina clinic in Alabama.