Therapist pleads guilty to $1.6M Medicaid fraud scheme

A licensed professional counselor in Connecticut pleaded guilty to defrauding Medicaid of more than $1.6 million.

Between January 2018 and March 2024, Rachel Collins, who operated a New Haven, Conn.-based therapy practice, submitted fraudulent claims to Medicaid for therapy services for dates of service when no services were provided to the Medicaid clients identified in the claims, according to an Aug. 6 release from the Justice Department. Ms. Collins submitted false claims to Medicaid totalling $1,647,031.51 in amounts that would equate to providing more than 24 hours of services in a single day for clients she had never treated and under other false pretenses.

 Ms. Collins pleaded guilty to charges of healthcare fraud and faces a maximum of 10 years of imprisonment, according to the release. As part of her plea agreement, she agreed to forfeit $114,085.55 that was seized from a bank account during the investigation.

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