- Associated Press - Tuesday, May 31, 2016

HARTFORD, Conn. (AP) - 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 services to the intellectually disabled and at-risk youth.

The government alleges that REM between June 2007 and June 2014 incorrectly reported certain interest expenses as allowable costs under the state’s cost standards, resulting in the overpayments.

REM ceased operations in late 2014.

The Mentor Network, a Boston-based organization of which REM was a part, said in a statement that REM billed according to contract and only for services delivered. It says REM’s closure in 2014 was unrelated.

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