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NUWAY Alliance Stings Taxpayers for $18.5M in Medicaid Kickbacks Scam
MINNEAPOLIS – In a brazen display of greed, NUWAY Alliance, Inc. has agreed to pay the United States $18,500,000 for submitting fraudulent claims to Medicaid in violation of the False Claim Act.
Between January 2019 through February 2025, NUWAY Alliance provided intensive outpatient (IOP) treatment to thousands of clients suffering from addiction in Minnesota. But in a shocking betrayal of trust, the company compensated Medicaid patients for seeking IOP treatment – a practice that is reimbursable by Medicaid, yet strictly forbidden by federal anti-kickback statute.
As if that wasn’t enough, NUWAY Alliance also submitted false claims to Medicaid for IOP services they had not provided, resulting in double-billing for the same period of time as distinct billable units. This reckless disregard for the law has left taxpayers reeling, with the company defrauding the federal government and state of Minnesota of millions of dollars since at least 2018.
“The submission of false claims for federally funded government contracts will not be tolerated. Protecting taxpayer dollars from fraud and abuse is one of our top priorities at the U.S. Attorney’s Office,” said Acting U.S. Attorney for the District of Minnesota Joseph H. Thompson. “This settlement should serve as further proof that we will aggressively investigate Medicaid fraud whenever it occurs and will hold all companies to account.”
“Our enforcement agency is dedicated to protecting the integrity of federal health care programs, including Medicaid, and to ensure taxpayer money is used as intended to serve vulnerable populations,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to hold accountable those who manipulate taxpayer-funded health programs to boost their profits.”
As part of the settlement, NUWAY Alliance entered into a 5-year Corporate Integrity Agreement with HHS-OIG, which requires the company to maintain a compliance program designed to foster adherence to federal health care program requirements and protect the programs. The CIA also mandates that NUWAY 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 these settlements 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|Violent Crime
- Source: Official Source ↗
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