KENTUCKY (WKYT) - Addiction Recovery Care, also known as ARC, has agreed to pay more than $116 million to resolve Medicaid fraud allegations, the Department of Justice announced on Monday.

ARC operates residential and outpatient drug rehabilitation facilities across Kentucky.

In April 2023, current and former ARC employees filed a complaint against the company, alleging ARC was submitting false claims for payment for services, according to the DOJ.

Under the agreement, the government alleged ARC misrepresented the qualifications of some of its claims to Kentucky’s Medicaid program in order to receive higher reimbursements. The DOJ also alleged ARC billed duplicate office visits that had already been reimbursed.

The DOJ said the false claims occurred between January 2018 and March 2024.

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