(KNSI) – A substance abuse treatment center that once operated in central Minnesota has entered into a settlement with the federal government over alleged Medicaid fraud.
NUWAY Alliance will pay $18.5 million and must operate under the watchful eye of the U.S. Department of Health and Human Services’ Office of Inspector General to ensure future compliance. Minnesota’s share of the settlement is $8 million. The investigation was brought on by a whistleblower. Known as a relator, by law, they get to keep a percentage of the total settlement for themselves.
The Attorney General’s Office says the state’s portion of the money will be deposited in the General Fund. NUWAY is accused of paying kickbacks and double-billing Medicaid.
Attorney General Keith Ellison says, “I am proud to be holding NUWAY accountable for their wrongdoing. Medicaid does tremendous good in the lives of so many Minnesotans, and I will not allow fraudsters to plunder it for personal gain.”
Department of Human Services Temporary Commissioner Shireen Gandhi added, “Overbilling Medicaid while shortchanging clients is indefensible. That is why DHS, the U.S. Attorney’s Office, and the Minnesota Attorney General’s Medicaid Fraud Control Unit worked together to root out abuse of an essential program. Today’s settlement not only requires NUWAY to make a substantial payback to taxpayers, it protects the rights of clients to choose a provider that is right for them and receive the services being billed.”
Officials allege NUWAY knowingly paid kickbacks to encourage people to use their intensive outpatient substance abuse disorder services for six years. In January 2020, the company began billing Medicaid multiple times for the same treatment.
NUWAY ran a counseling center on West St. Germain Street in St. Cloud. It moved to Great Oak Drive in Waite Park and is now listed as permanently closed.
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