New Mexico Settles With Five Behavioral Health Organizations Over 2013 Medicaid Fraud Allegations

On August 21, 2019, the New Mexico Human Services Department (HSD) announced it had settled with five of the 10 behavioral health provider organizations who sued the state because their Medicaid reimbursements were frozen in June 2013 due to allegations of fraud by the previous administration of Governor Susana Martinez. The five organizations are Counseling Associates, Inc.; Hogares, Inc; TeamBuilders Counseling Services, Inc.; The Counseling Center, Inc.; and Valencia Counseling Services, Inc.

The Martinez administration had hired an independent auditor that estimated that the provider organizations had been overpaid by $36 million over a three-year period. The payhold meant . . .