Alaska temporarily suspends Medicaid payments to Anchorage health care service

Oct. 22--The Alaska Department of Health and Social Services began suspending Medicaid payments Tuesday to C Care Services in Anchorage while investigation into the company and its owner continued.

C Care Services and owner Cecilia De Leon are under investigation for Medicaid fraud, according to a statement from DHSS. The statement calls the fraud a "credible allegation" that is pending with the Alaska Medicaid Fraud Control Unit. Federal regulations stipulate that under such circumstances a state must suspend Medicaid payments, the statement said.

Duane Mayes, director of the state's Division of Senior and Disabilities Services, said he could not provide additional details on the fraud allegations Tuesday, citing an open investigation. "Because it is now going to a full-fledge investigation, I am not at liberty to talk about the status," he said.

C Care Services did not immediately respond to request for comment Tuesday.

DHSS characterized the company as "a personal care and home- and community-based waiver service provider." The company was mentioned in a 2009 list from the Alaska Department of Labor as one of "Alaska's Top 100 Largest Private Employers."

Mayes said the company may still conduct business as the investigation moves forward but cannot bill Medicaid. The Medicaid program provides health insurance for low-income Americans and is funded by the federal government and the states.

According to the DHSS statement, the Medicaid payment suspension will remain in effect until either the state's Department of Law and DHSS determine there is not enough evidence to support a claim of fraud or upon the completion of legal proceedings.

If C Care Services or De Leon are convicted of Medicaid fraud, the suspension will become permanent, the statement said.

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