An assisted living program and two executives have been ordered to pay the state of Maryland almost $426,000 in damages for reportedly submitting fraudulent claims to the state’s Medicaid program.
Maryland Attorney General Anthony G. Brown made the announcement Friday.
Brown’s office said its Medicaid Fraud and Vulnerable Victims Unit began investigating Komfort & Kare, an assisted living program licensed by the state to provide housing and related services to Medicaid beneficiaries, after receiving a referral from the Maryland Department of Health.
The MFVVU reportedly found that Komfort & Kare had housed four Medicaid recipients at locations that had not been inspected, approved or licensed by the state from at least Jan. 10, 2020, through Feb. 17, 2022, “putting the residents’ health and safety at risk.” The alleged fraud happened during the pandemic.
Maryland sued Komfort & Kare; its former owner and manager, LaShera White; and its former alternate manager and administrator, LaSharn Angelita Brown, in January, claiming that they had violated the Maryland False Health Claims Act by falsely billing Medicaid for the housing that had been provided in the unlicensed locations. The Medicaid program was billed almost $142,000.
“The FHCA prohibits billing Medicaid for false claims — such as when an assisted living program bills Medicaid for services that bypassed laws and regulations, including those that require assisted living programs to house Medicaid recipients in licensed locations,” Brown’s office said.
The Circuit Court for Baltimore County granted a default judgment against Komfort & Kare, White and Brown and ordered a payment of $425,940.54, triple the amount of damages sustained by the state. The Maryland False Health Claims Act allows the courts to award up to three times the amount of the fraudulent claims.
“Marylanders on Medicaid are some of the most vulnerable residents of our state. Licensing standards make sure facilities meet minimum requirements to protect their dignity and safety,” Brown said. “This case shows that our office will step in when companies’ actions threaten marginalized Marylanders’ health and safety, especially during a deadly public health emergency like COVID-19.”
