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Brockton-Based Mental Health Provider Settles for $700,000 Amid MassHealth Fraud Allegations

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Published on October 05, 2023
Brockton-Based Mental Health Provider Settles for $700,000 Amid MassHealth Fraud AllegationsSource: U.S. District Court for the District of Massachusetts

Andrea Joy Campbell, the Massachusetts Attorney General, announced a $700,000 settlement with Luminosity for allegations related to filing false claims to MassHealth, the state's Medicaid program. According to the official statement from the Commonwealth, Luminosity was charged with billing MassHealth for services deeper levels than provided and attributing inapplicable billing codes to the services rendered.

About two million people in Massachusetts rely on MassHealth for crucial healthcare services, particularly mental health care. The Attorney General confirmed her commitment to ensuring access to mental health services for vulnerable societies to and maintaining the integrity of MassHealth.

However, allegations against Luminosity should not diminish the significance of mental health care. The dual need of public fund preservation and access to essential care is a shared task, with all participating bodies expected to act with diligence and fairness.

A tip-off from MassHealth and its managed care entities (MCEs) led to scrutiny of Luminosity's billing practices. As reported in the press release, the ensuing investigation revealed Luminosity's deception in the claims submitted to MassHealth and MCEs regarding the scope and extent of services. Also, they knowingly used an incorrect billing code for certain services.

The $700,000 settlement implies more than mere financial recompense. Luminosity is also bound to a three-year independent compliance monitoring program at their own expense. They must implement updates to their policies and procedures, conduct staff trainings, and carry out periodic audits to ensure compliance with federal and state law.