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NUWAY Alliance Pays $18.5M for Medicaid Kickbacks Scheme
MINNEAPOLIS – In a shocking case of Medicaid fraud, NUWAY Alliance, Inc. has agreed to pay the United States a whopping $18,500,000 for submitting fraudulent claims to Medicaid in violation of the False Claims Act.
According to Acting U.S. Attorney Joseph H. Thompson, NUWAY Alliance provided intensive outpatient (IOP) treatment, among other services, for substance use disorder to thousands of clients suffering from addiction each year in Minnesota. However, between January 2019 and February 2025, the company compensated Medicaid patients for seeking IOP treatment – which is reimbursable by Medicaid – in violation of federal anti-kickback statute and resulting in false claims.
But that’s not all – NUWAY Alliance also submitted false claims to Medicaid for IOP services they had not provided. The company was found to have double-billed the same period of time as distinct billable units, further padding their pockets with taxpayer dollars.
“The submission of false claims for federally funded government contracts will not be tolerated,” said Acting U.S. Attorney Thompson. “Protecting taxpayer dollars from fraud and abuse is one of our top priorities at the U.S. Attorney’s Office.”
This settlement marks a significant victory for the U.S. Attorney’s Office and its partners in the fight against Medicaid fraud. As part of the agreement, NUWAY Alliance has entered into a 5-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).
The Corporate Integrity Agreement requires NUWAY Alliance to maintain a compliance program designed to foster adherence to federal health care program requirements and protect the programs. The company must also engage an independent organization to review claims they submit to Medicaid to ensure they comply with applicable requirements.
The matter was handled by the Civil Division of the U.S. Attorney’s Office for the District of Minnesota, the Department of Health and Human Service’s Office of the Inspector General, the Office of the Minnesota Attorney General’s Medicaid Fraud Division, and the Office of the Inspector General at the Minnesota Department of Human Services.
The claims resolved by this settlement are allegations only; there has been no determination of liability or wrongdoing.
Key Facts
- State: Minnesota
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: Official Source ↗
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