A Hagerstown-based drug and alcohol treatment provider will pay $375,000 to the state to settle allegations it committed Medicaid fraud by employing a prohibited person and deceiving state regulators.
Wells House Inc. employed a person on the federal List of Excluded Individuals and Entities, which names people who cannot be employed by Medicaid, Medicare and other federal health programs because of past misconduct, according to the Maryland attorney general’s office.
The employee, Robert C. Benchoff, was with Wells House for more than five years while it was getting Medicaid payments, the attorney general’s office said.
The state Department of Health and Mental Hygiene told Wells House in 2010 that it could not employ Benchoff. The company responded with a letter saying it fired Benchoff but he remained on payroll until September 2015.