Kentucky’s ARC LLC & Affiliates Settle $16.2 Medicaid Fraud Complaint Amid Ongoing Tax Battle

On July 16, 2026, Addiction Recovery Care LLC (ARC), an addiction treatment provider organization in Kentucky, entered a final settlement agreement with the federal Department of Justice in which it will pay a civil judgment of $16.2 million. The settlement resolves a federal whistleblower complaint and a Medicaid fraud investigation of ARC and its affiliates Pioneer Health Group, LLC, and Science Hill Family Care, LLC. In settling, ARC admitted no wrongdoing.

The whistleblower complaint alleged that ARC overstated the qualifications of some of its clinical behavioral health professionals to bill Kentucky Medicaid at a higher rate. This allegedly took . . .