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Press Release

The ARC of Anchorage to Pay Nearly $2.3 Million Dollars to Settle Medicaid False Claims Act Allegations

April 24, 2018

(Anchorage, Alaska) – The Alaska Department of Law announced today the Arc of Anchorage has agreed to resolve allegations the company violated the Federal False Claims Act by submitting false claims to the Alaska Medicaid Program and retaining Medicaid overpayment.  Under the settlement agreement, The Arc of Anchorage has agreed to pay the Alaska Medicaid Program $2,299,392.16.

This settlement was the result of a coordinated effort by the Alaska Medicaid Fraud Control Unit (MFCU), the Office of Inspector General (OIG), the Alaska Medicaid Program, and the cooperation of the Arc of Anchorage.

The State contends the Arc submitted or authorized the submission of false claims to the Alaska Medicaid Program.  Specifically, the State contends the Arc billed for services not provided, and billed for overlapping services with the same provider.  The State further contends that the Arc failed to repay money owed to the Medicaid Program identified in audits performed by the Arc.

The Arc is required to repay the overpayment totaling $1,149,696.08 for billings between 2012 and 2016.  The settlement requires a 100% penalty on overpayments for a total of $2,299,392.16. The settlement requires the Arc to enter into a five year Corporate Integrity Agreement with OIG, which calls for the Arc to comply with specific terms set by OIG that guarantee there will be no waste, fraud, and abuse in the future.

“The goal of this resolution was to make the Alaska Medicaid Program whole, keep the Arc in business, and send a strong message of deterrence to other providers. I believe the agreement accomplishes these goals,” said Attorney General Jahna Lindemuth.  “This is a good course of action for the State of Alaska as it will immediately resolve the issues with the Arc without having to go through prolonged litigation.”

The MFCU’s intervention in this matter illustrates the State’s emphasis on combating health care fraud.  One of the most powerful tools in this effort is tips from the public. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Alaska Medicaid Fraud Control Unit at (907) 269-6279 or by submitting a Medicaid Fraud / Elder Abuse Complaint Form.  Tips can also be provided to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477) or online.

CONTACT:  Paul Miovas, Chief Assistant Attorney General, Office of Special Prosecutions, 269-6314 or

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