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Nebraska AG's Office reaches $200,000 settlement with Omaha mental health care provider

Nebraska AG's Office reaches $200,000 settlement with Omaha mental health care provider

LINCOLN — The Nebraska Attorney General’s Office has reached an out-of-court settlement with an Omaha mental health care provider accused of submitting false claims for Medicaid reimbursement.

Kathleen Wiley, who provided counseling services, agreed to a $200,000 settlement with the state and its Medicaid contractor in exchange for dropping a civil lawsuit filed in Lancaster County District Court.

As part of the settlement, Wiley admitted no wrongdoing.

The state, in its lawsuit, had accused Wiley of submitting 1,201 claims totaling $109,274 to Nebraska Medicaid or its contractor between September 2013 and December 2018 without proper documentation showing that services had been provided.

The state’s False Medicaid Claims Act allows the state to recover triple the amount that was paid to a provider like Wiley, who settled the dispute by paying $200,000.

The matter was initially investigated by Magellan Health, a Nebraska Medicaid contractor, and the Nebraska Department of Health and Human Services. It was then referred to the Attorney General’s Office for further investigation and legal action.

Attempts to reach Wiley for contact were unsuccessful. She closed her business in 2019, according to the settlement agreement.

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Reporter - Regional/state issues

Paul covers state government and affiliated issues. He specializes in tax and transportation issues, following the governor and the state prison system. Follow him on Twitter @PaulHammelOWH. Phone: 402-473-9584.

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