Alaska Digitel to Pay Over $1.5 Million for False Claims to FCC’s Low Income Program

General Communication Inc. (GCI) has paid $1,556,075 to settle allegations that Alaska DigiTel LLC, a former Alaska limited liability company now owned by GCI, submitted false claims to the Federal Communications Commission’s (FCC) Low Income Support Program, the Justice Department announced February 22, 2011.

The government’s investigation of Alaska DigiTel was initiated by a lawsuit filed under the False Claims Act’s qui tam or whistleblower provisions, which permit private parties to sue for false claims on behalf of the United States and to share in any recovery.   The whistleblower in this case, who alleged that Alaska DigiTel was signing up subscribers who did not qualify for the program, will receive $260,274 from the settlement.

The Low Income Support Program of the Universal Service Fund, which includes the Lifeline, LinkUp and Toll Limitation Services, was created by Congress in the Telecommunications Act of 1996 and is administered by the Universal Service Administrative Company for the FCC.   Under the Low Income Support Program, eligible individuals may apply for free or discounted phone or wireless services. Reimbursement is paid directly to Eligible Telecommunications Carriers, such as Alaska DigiTel.

Today’s settlement resolves allegations that Alaska DigiTel violated the False Claims Act by submitting claims to the Low Income Support Program for improperly substantiated, duplicative, or otherwise ineligible subscribers for the period from Jan. 1, 2004, though Aug. 31, 2008.

If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.

APS Healthcare to Pay $13 Million for False Claims

On Febrauary 22, 2011, the United States Attorney’s Office announced that Innovative Resources Group, LLC, doing business as APS Healthcare Midwest, reached a $13 million settlement with the United States and the state of Georgia to resolve allegations under the False Claims Act. According to the suit, APS Healthcare submitted claims to Medicaid through the Georgia Department of Community Health (DCH) for specialty services related to disease management and case management to members of the Georgia Medicaid Management Program (GAMMP) that it did not provide. This occurred from September 1, 2007 through February 28, 2010.

United States Attorney Sally Quillian Yates said of the settlement, “In this time of tight budgets and rising health care costs, the state of Georgia tried to improve its services to its Medicaid recipients by contracting with APS Healthcare. But instead of providing improved efficiency and effectiveness the company billed for, APS Healthcare took Medicaid’s money for itself and left some of our most vulnerable citizens without the aid they deserved.”

Under the GAMMP contract, APS Healthcare agreed to provide case and disease management services to Georgia Medicaid recipients and was paid a monthly fee for each member receiving such services. The government contends that APS Healthcare failed to provide the required services to a large portion of the Medicaid recipients and over-billed the Georgia Department of Community Health in its monthly invoices.

APS Healthcare has executed a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services, Office of Inspector General, which will require an aggressive compliance program. The Corporate Integrity Agreement requires, among other things, intensive training and implementation of policies and procedures designed to ensure compliance with federal health care program requirements. In addition, APS Healthcare will be subject to external review of its compliance with state Medicaid contracts. If APS Healthcare fails to comply with certain material terms of the CIA, the company is subject to monetary penalties and exclusion from federal health care programs, including Medicare and Medicaid.

If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.