Conn. AG reaches $9.9 million settlement with multiple companies to resolve Medicaid billing lawsuit

By Bryan Cohen | Jun 5, 2013

HARTFORD, Conn. (Legal Newsline) - Connecticut Attorney General George Jepsen announced a $9.9 million settlement Monday with Gary Anusavice and six of his management and consulting companies to resolve a Medicaid billing lawsuit.

Anusavice, and his companies N.B. Dental Inc., Dental Care of Connecticut Inc., Electron Marketing Inc., AMZ Consulting Inc., Haven Consulting Inc. and E.G.A. Management Inc., were among 28 individuals, corporations and companies named in a May 2012 civil lawsuit. The defendants allegedly participated in an illegal scheme that resulted in more than $24 million in fraudulent Medicaid claims in violation of the Connecticut Unfair Trade Practices Act and the Connecticut False Claims Act.

Despite being permanently excluded from participating in Medicare and state healthcare programs for his felony conviction in April 1998, Anusavice allegedly continued to participate in the programs by setting up a series of corporations operated by dentists who were Medicaid providers. Anusavice allegedly violated his program exclusion by actively managing the practices. He also allegedly implemented a billing system that resulted in the state Medicaid program being billed twice for certain dental services or billed for services that were never rendered.

A stipulation for partial judgment memorialized the settlement on Monday in Hartford Superior Court. Anusavice also pleaded guilty to federal criminal charges on Monday for his involvement in the billing scheme.

"This settlement provides restitution to the Connecticut Medical Assistance Program and permanently bars Mr. Anusavice from participating in that program," Jepsen said. "In addition, he has agreed to cooperate with the state's ongoing investigation and litigation of this matter, as well as any other matter related to the alleged scheme."

Under the terms of the settlement, Anusavice and the companies will pay $9.9 million to the state, be barred from participating in any healthcare-related business in the state and waive all pending claims for payment by the state Department of Social Services to providers in which the defendants had a financial and/or ownership interest.

The stipulated judgment does not resolve the state's claims against other defendants in the lawsuit and the state's civil lawsuit against them is ongoing.

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