The largest Medicaid fraud case in state history is over.
Burlington Labs will pay the Vermont Medicaid program $6.75 million in a settlement, the Vermont Attorney General’s Office announced Monday. The seven-year repayment plan includes fines as well as roughly $5 million to cover improperly billed charges.
The settlement was expected, and it clears the path for an investor group headed by Jim Crook of Shelburne to purchase the locally grown drug-screening company on Burlington’s Main Street. Crook’s group had warned that the company could go under if it didn’t get a bailout — quickly.
State regulators green-lighted the purchase in August, pending the settlement agreement with the AG.
The deal allows Burlington Labs cofounders Michael Casarico and his wife, Jodie, to retain an interest in a new version of the business going forward, but with additional scrutiny and compliance measures.
“This settlement balances the ongoing needs for drug-testing services in Vermont with ensuring proper billings for services rendered and safeguarding of state and federal monies,” Attorney General Bill Sorrell said in a statement. No criminal charges were filed.
Burlington Labs is a privately owned company that conducts drug and alcohol screening tests on recovering addicts and recently released inmates, among other clients.
The company violated a number of Medicaid rules from January 1 to June 30, 2015, according to the settlement. The company billed as much as $1,150 for drug screenings, and revenue surged without a corresponding increase in patients.
Burlington Labs received more than $12 million from the Vermont Medicaid program in 2015, after receiving only approximately $10 million over the previous five years combined.
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“Reached a SETTLEMENT”… Once again, egregious lawbreaking & flat out robbery, but “no criminal charges filed”. NOBODY goes to jail. And the fines, as always, aren’t even half of what they made ripping off the taxpayers.
Everyone involved should be imprisoned, their homes and assets seized and sold to repay the taxpayers.
@ FreedomToOverreact: Please state your evidence that the people at BL understood that they were violating Medicaid’s complicated rules?
Knowyourass- BL and his crony friends understood, and understand still, exactly what they are doing. They ripped off the taxpayer. This is the kind of bull that gets this country to the choice of hillary or trump. Because there is never the expectation that anyone should be held accountable. .
FreedomToThink; If you really want to get mad- look up Michael Casarico’s fb friends list. So much corruption.
Again, the articles mention no evidence that BL intentionally broke the Medicaid rules. If you know of evidence that the public doesn’t know about, please share it.
Makes one wonder about Burlington Labs, I believe their CFO was Micky Wiles, he embezzled from Ben and Jerry’s. Did they not do their homework before hiring him?