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Millcreek Township School District Agrees to Pay Government $350,000 to Resolve Allegation of Improper Medicaid Reimbursement

FOR IMMEDIATE RELEASE January 21, 2014

The United States Attorney's Office for the Middle District of Pennsylvania announced that Millcreek Township School District has agreed to pay the United States $350,000 to resolve allegations that it submitted improper claims to the Medicaid-funded School Based Access Program. Millcreek Township School District is the public school system for students residing in Millcreek Township, Pennsylvania, a suburb of Erie.

According to United States Attorney Peter J. Smith, Millcreek Township School District has agreed to pay $350,000 to resolve allegations that from August 11, 2005, through June 28, 2007, the School District improperly submitted claims to the Pennsylvania School Based Access Program for payment when those claims did not satisfy the necessary program requirements. Payment is due within 60 days from the date of the Settlement Agreement (January 14, 2014).

The Pennsylvania School Based Access Program provides federal Medicaid reimbursement to schools for health related services provided by those schools to special needs students as part of an Individualized Education Plan. Schools submitting claims to Access for payment must satisfy a number of requirements, and the amount of reimbursement depends on the type of service performed.

The U.S. Attorney's Office in Harrisburg had jurisdiction because Access is managed by the Pennsylvania Department of Public Welfare and the Pennsylvania Department of Education, both of which are based in Harrisburg.

In regard to Millcreek, the government determined that the School District submitted Access claims and received federal reimbursement for claims that were improper due, generally, to discrepancies including the absence of recipients on dates billed for services, claims for non-compensable services, improper grouping of services for billing purposes, lack of adequate documentation, and claims for unlisted services. The specific types of violations are set out in the Settlement Agreement. (A copy of the Settlement Agreement is available from the U.S. Attorney's Office on request.)

The U.S. Attorney's Office credited the assistance provided by the Pennsylvania Department of Public Welfare, which conducted the audit of Millcreek Township School District's Access claims. The U.S. Attorney's Office also acknowledged Millcreek Township School District's cooperation with the investigation. The Settlement Agreement is not an admission of liability by the School District.

The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the U.S. Department of Education, Office of Inspector General. The case was handled by Assistant United States Attorneys D. Brian Simpson and Anthony Scicchitano, Civil Division, United States Attorney's Office.

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Last Modified: 01/23/2014