October 11, 2017

Worcester health agency owner arrested over MassHealth fraud

Attorney General Maura Healey has charged the owner of a Worcester home health agency with fraud, saying Hellen Kiago overbilled and falsely billed for unauthorized Medicaid services.

Hellen Kiago, a 47-year-old Sturbridge resident, was arrested on Wednesday morning for allegedly stealing about $2.7 million from the MassHealth system as the owner of a Worcester-based home health agency, Attorney General Maura Healey's office said in a press release Wednesday afternoon.

Healey's office alleges Kiago's Lifestream Healthcare Alliance LLC routinely overbilled and falsely billed for services that were not authorized. Kiago and Lifestream were arraigned in Worcester Superior Court Wednesday, where they pleaded not guilty to charges of Medicaid false claims and larceny, according to Healey's office. The defendants are due back in court on Dec. 6 for a pretrial conference.

Managers at the Highland Street home health agency did not return a phone call seeking comment by deadline on Wednesday. According to Healey's office, Lifestream has a Dracut office as well and was established to provide home health services to people with MassHealth insurance, the state's Medicaid program. Kiago is the sole owner, Healey's office said.

An investigation was launched after Healey's office receive complaints from several former employees alleging misconduct and fraudulent billing practices.

The indictments allege the fraud goes back to at least July 2015.


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