Vermont, Burlington Labs agree to $6.75M Medicaid fraud settlement

Burlington (Vt.) Labs agreed to a $6.75 million settlement deal with Vermont’s Attorney General William Sorrell and his office to resolve claims the company violated the False Claims Act, according to VPR.

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According to the settlement agreement, Burlington Labs will pay the Vermont Medicaid program $6.75 million in a seven-year period. In a statement by the attorney general’s office, the extended payment contract gives Burlington Labs the chance to continue operations while also compensating the state Medicaid program. The settlement also requires Burlington Labs to enter into a corporate integrity agreement with the state.

The attorney general’s office investigated Burlington Labs after the company was accused of submitting false claims and receiving overpayments from the state Medicaid program. According to investigators, in January 2015, Burlington Labs received more than $12 million in reimbursements from Medicaid, compared to the $10 million it received in total from the program during the previous five years, according to the article.

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