Bryan Cohen Jul. 25, 2013, 7:07pm

HOUSTON (Legal Newsline) - Texas Attorney General Greg Abbott announced a $1.4 million settlement on Wednesday with Planned Parenthood Gulf Coast Inc. to resolve allegations of Medicaid fraud.

Planned Parenthood Gulf Coast allegedly improperly billed the Texas Medicaid program for services and products that were not rendered, not medically necessary and were not covered by the Medicaid program. The alleged improper billing practices were not eligible for Medicaid reimbursement. Planned Parenthood Gulf Coast allegedly falsified material information in the medical records of patients to support fraudulent Medicaid reimbursement claims.

The matter was first brought to the attention of Abbott's office after a whistleblower filed a lawsuit against Planned Parenthood Gulf Coast, prompting an inquiry by Abbott's office and the Texas Health and Human Services Commission's Office of Inspector General. The relator-whistleblower will receive a share of the state's recovery.

Under the terms of the agreement, Planned Parenthood Gulf Coast must pay $1.4 million to resolve the enforcement action. Medicaid is jointly funded by the federal and state government, so the federal government will be entitled to a portion of the Texas recovery.

Since 2002, Abbott's Civil Medicaid Fraud Division recovered more than $400 million for the state. Total recoveries for the state and federal government exceed $1 billion.

More News