A former Connecticut group home operator has agreed to pay $1.5 million to settle allegations it received overpayments from the state's Medicaid program.
Authorities announced Tuesday that REM Connecticut Community Services Inc. entered into a civil settlement agreement with the federal and state governments.
REM, formerly located in Middletown, operated various group homes that provided residential and day services to the intellectually disabled and at-risk youth.
The government alleges that REM between June 2007 and June 2014 erroneously reported certain interest expenses as allowable costs under the state's cost standards. As a result, REM received overpayments from Connecticut's Medicaid program.
REM ceased operations in Connecticut in late 2014.
The Mentor Network, a Boston-based organization of which REM was a part, didn't immediately return an email seeking comment.