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May 31, 2016

Group home operator to pay $1.5M for overbilling

A former Middletown group home operator has entered into a civil settlement agreement with the federal and state governments to pay $1.5 million to resolve allegations that it received overpayments from the Connecticut Medicaid program.

State and federal officials said the charges against REM, which has ceased operating in Connecticut, stem from the company submitting cost reports to the state for a seven-year period from July 2007 to June 2014 that contained improper interest expenses leading to improper overpayments.

REM operated various group homes that provided residential and day services to the intellectually disabled and at-risk youth.

To resolve its liability, REM will pay $1.5 million to the federal and state governments. Part of the settlement amount will be satisfied by the government retaining $1.2 million that had been suspended by the state of Connecticut because of REM’s questionable billing practices. The additional $310,975 will be paid by REM collectively to the federal and state governments at the time the settlement agreement is executed.

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