A methadone clinic with offices in New Haven will pay $1.38 million to settle allegations it double-billed Medicaid for opioid addiction treatment services, authorities said.
From Oct. 2009 to Nov. 2013, New Era Rehabilitation Center, which has locations in Bridgeport and New Haven, billed Connecticut’s Medicaid program for drug counseling services that were already included in a bundled rate, Attorney General George Jepsen’s office said Friday.
According to officials, the clinic and its owners, Dr. Ebenezer Kolade and Dr. Christina Kolade, billed Medicaid a weekly rate that included all services associated with methadone maintenance treatment, a form of medication-assisted treatment for opioid abuse.
Although drug counseling sessions were included, state officials alleged the clinic also submitted separate claims under the billing code “outpatient therapy,” a more intensive service that must be performed by a doctor or other health professional.
“Responsible compliance with federal and state claiming rules is something that every provider must observe when enrolled in public health coverage programs,” said state Department of Social Services Commissioner Roderick L. Bremby in a joint statement with Jepson.
Jepsen said the alleged double-billing “diverted taxpayer dollars earmarked to help fight the opioid epidemic that has plagued our state.”
Dr. Ebenezer Kolade, New Era’s CEO, said Friday afternoon the clinic cooperated fully with investigators and that the settlement was not an admission of wrongdoing.
“For 16 years New Era Rehabilitation Center (NERC) has been a respected and valued member of the New Haven and Bridgeport communities, providing much-needed behavioral health and substance abuse treatment services,” he said in a statement. “This settlement agreement is not an admission of liability – instead, NERC wishes to avoid the disruption of litigation and focus on addressing the state’s devastating opioid crisis and helping patients recover.”
The state’s $881,945 share of the settlement will be returned to the Connecticut Medicaid Assistance Program, officials said.
This story has been updated to include comments from the clinic’s owner.
Natalie Missakian can be reached at news@newhavenbiz.com
