MINNEAPOLIS –Acting U.S. Attorney Joseph H. Thompson announced today that NUWAY Alliance, Inc. has agreed to pay the United States $18,500,000 for submitting fraudulent claims to Medicaid in violation of the False Claim Act.

NUWAY Alliance provided intensive outpatient (IOP) treatment, among other services, for substance use disorder to thousands of clients suffering from addiction each year in Minnesota. Between January 2019 through February 2025, NUWAY compensated Medicaid patients for seeking IOP treatment-which is reimbursable by Medicaid-in violation of federal anti-kickback statute and resulting in false claims. NUWAY also submitted false claims to Medicaid for IOP services they had not provided as they involved double-billing the same period of time as distinct billable units. In total, since at least 2018, NUWAY defrauded the federal government and state of Minnesota of millions of dollars.

"The submission of false claims for federally funded government contracts will not be tolerated. Protecting taxpayer dollars from fraud and abuse is one of our top priorities at the U.S. Attorney's Office." said Acting U.S. Attorney for the District of Minnesota Joseph H. Thompson. "This settlement should serve as further proof that we will aggressively investigate Medicaid fraud whenever it occurs and will hold all companies to account."

"Our enforcement agency is dedicated to protecting the integrity of federal health care programs including Medicaid and to ensure taxpayer...

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