Millville transit firm to pay $1M over alleged MassHealth fraud
Image | Courtesy of Alison Kuznitz, State House News Service
Massachusetts Attorney General Andrea Joy Campbell speaks to reporters.
Following a whistleblower lawsuit, a non-emergency transportation company with operations in Worcester County has been ordered to pay $1.05 million for alleged MassHealth fraud and breaking state and federal laws.
Millville-based Traveler's Transit reached a settlement with the Massachusetts Office of the Attorney General for allegedly submitting false claims to both MassHealth and the state’s Department of Developmental Services for driving contracted routes that Traveler's Transit had in fact illegally combined or eliminated entirely, according to a Wednesday press release from the AG’s office.
These allegations were first uncovered through a whistleblower lawsuit filed in the District of Massachusetts, according to the attorney general’s office.
Traveler's Transit provides contracted rides, including wheelchair and group transportation, with Worcester and Bristol counties’ regional transit authorities, providing trips for MassHealth members and disabled DDS service recipients. These rides are paid for by both entities.
The attorney general’s office asserts Traveler’s Transit neglected to provide contract-required staff monitors on routes for patient safety.
Traveler's Transit could not be reached for comment.
In addition to the settlement, the company must pay for and execute a three-year independent compliance monitoring program in order to update policies and procedures in compliance with state and federal laws, train staff on these updates, and implement periodic audits.
“When companies violate our laws and defraud crucial state programs, taxpayer-funded resources are wasted and the integrity of our public programs are put at risk,” AG Andrea Joy Campbell said in the release. “I am proud to announce this settlement, which will provide meaningful restitution to the Commonwealth and ensure compliance with laws that enable our state programs to serve the millions of residents who depend on them.”
The AGO’s most recent settlement is one of several alleged MassHealth fraud cases in the region this year.
In February, a Worcester skilled nursing facility was sued by the U.S. Attorney’s office for alleged systematic fraudulent billing of Medicare and Medicaid between 2017 and 2023.
In March, a Worcester clinical lab and its owner were charged for allegedly participating in another $7.8-million MassHealth fraud scheme.
Then in April, a similar Worcester-based non-emergency medical transportation company and its owner were indicted for an alleged $3-million MassHealth fraud scheme and abusing patients.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare and diversity, equity, and inclusion industries.
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