The ARC of Anchorage to pay nearly $2.3 million to settle Medicaid False Claims Act allegations

The Alaska Department of Law announced the Arc of Anchorage has agreed to resolve allegations the company violated the Federal False Claims Act by submitting false claims to the Alaska Medicaid Program and retaining Medicaid overpayment.  Under the settlement agreement, The Arc of Anchorage has agreed to pay the Alaska Medicaid Program $2,299,392.16.

This settlement was the result of a coordinated effort by the Alaska Medicaid Fraud Control Unit (MFCU), the Office of Inspector General (OIG), the Alaska Medicaid Program, and the cooperation of the Arc of Anchorage.

The State contends the Arc submitted or authorized the submission of false claims to the Alaska Medicaid Program.  Specifically, the State contends the Arc billed for services not provided, and billed for overlapping services with the same provider.  The State further contends that the Arc failed to repay money owed to the Medicaid Program identified in audits performed by the Arc.

The Arc is required to repay the overpayment totaling $1,149,696.08 for billings between 2012 and 2016.  The settlement requires a 100% penalty on overpayments for a total of $2,299,392.16. The settlement requires the Arc to enter into a five year Corporate Integrity Agreement with OIG, which calls for the Arc to comply with specific terms set by OIG that guarantee there will be no waste, fraud, and abuse in the future.

“The goal of this resolution was to make the Alaska Medicaid Program whole, keep the Arc in business, and send a strong message of deterrence to other providers. I believe the agreement accomplishes these goals,” said Attorney General Jahna Lindemuth.  “This is a good course of action for the State of Alaska as it will immediately resolve the issues with the Arc without having to go through prolonged litigation.”

This press release was provided by the State of Alaska Department of Law.