Press Release  Bedford-Based Transportation Company to Pay More Than $700,000 for Alleged False Claims Relating to Non-Emergency Wheelchair Van Rides

Boston —  A Bedford-based transportation service provider has agreed to pay more than $700,000 to resolve allegations that it submitted false claims to the state’s Medicaid program (MassHealth) for medically unnecessary wheelchair van rides, Attorney General Maura Healey announced today. It also allegedly submitted claims for services that should have been provided at a lower cost through a MassHealth transportation broker.

The AG’s investigation revealed that REM Transportation Services, LLC (REM) submitted the false claims from January 5, 2010 to December 31, 2014. Many of the MassHealth members allegedly receiving the rides were ambulatory and did not use wheelchairs or need assistance, as required under MassHealth regulations.

“Medicaid providers cannot cheat the system by violating regulations intended to protect the fiscal integrity of a program that benefits low-income people,” AG Healey said. “This settlement provides restitution to that program and ensures that taxpayer dollars are used to help members, not to unjustly enrich providers.”

Pursuant to its regulations, MassHealth only pays transportation providers for nonemergency wheelchair rides provided to members who: (1) use wheelchairs; (2) need to be carried up or down stairs or require the assistance of two persons; or (3) have severe mobility handicaps that prevent them from using public transportation, dial-a-ride, or taxi transportation. 

Additionally, investigators also determined that during the same time period, REM fraudulently billed for more than 40,000 rides provided to members who reside in community-based settings where a selective contract with a transportation broker was in effect.

Regulations provide that for members who reside in community-based settings, MassHealth will, under most circumstances, only pay transportation providers for nonemergency rides when they are provided through those competitive selective contracts.

As a result of REM’s conduct, MassHealth overpaid REM for services in violation of their provider contract and MassHealth regulations. Under the terms of the settlement, REM has agreed to pay a total of $717,798.48 to the Commonwealth. 

This matter was handled by Assistant Attorney General Gregory H. Matthews and Investigator Eric Panicucci of AG Healey’s Medicaid Fraud Division

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