Medicaid Contractor Settles Fraud Claims (Privatizing Foster Care Services)

[LeighAnn]

Source: AP via MSN Money

A contractor that helped the District of Columbia submit claims to Medicaid has agreed to pay $42.6 million to settle a Medicaid fraud case, the Justice Department announced Monday.

The agreement calls for the Justice Department to defer prosecution against Reston, Va.,-based Maximus Inc. on criminal charges related to the case. Maximus also agreed to have the federal government review its contracts and share the findings with its clients.

Maximus, which contracted with the D.C. Child and Family Services Agency to manage foster care cases, admitted responsibility for causing the city to submit Medicaid claims for children who may not have received foster care services.

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The investigation began after a former division manager for the company, Benjamin Turner, sued the agency under federal whistleblower provisions. He will receive $4.9 million as his share of the settlement.

Read more: http://news.moneycentral.msn.com/provider/providerarticle.aspx?Feed=AP&Date=20070723&ID=7214356

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Qui Tam, they call this. If you know somebody is defrauding the government and you file a lawsuit, you get a cut of the winnings.

http://quitamonline.com/