Molina to Pay $4.6M to Settle False Claim Act Allegations

Molina Healthcare and its previously owned subsidiary, Pathways of Massachusetts, agreed to pay over $4.6 million to settle claims that it violated the False Claims Act by submitting reimbursements to MassHealth, the state’s Medicaid Program, for services provided by inadequately licensed and unsupervised staff, the Department of Justice announced.

The settlement comes after four former Pathways employees brought a suit against the company and an investigation was launched into the behavioral health clinics by the attorney general’s Medicaid fraud division, Healthcare Dive reports.

“This company routinely allowed unlicensed and unsupervised mental health professionals to provide care to patients, all while billing MassHealth for it,” Massachusetts Attorney General Maura Healey said in a statement. Read more.

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