The attorney general’s office has announced an $8 million settlement of a Medicaid fraud investigation of Empower Healthcare Solutions, which provides services to some 20,000 high-need Medicaid recipients, people with intellectual or developmental disabilities, behavioral health disorders or both.

The Arkansas Nonprofit News Network reported this investigation was underway in early December. It said the state contended it had overpaid, or not received significant documentation for services provided through Empower, a managed care organization for a group of service providers. All told, the state spends more than $1 billion a year for services provided through agencies such as Empower.

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The attorney general’s office said a Medicaid Fraud investigation concluded $10.3 million had been improperly reported. Empower contended any improper reporting was unintentional, but agreed to pay $1 million in penalties. It also will owe an additional $7 million in a 2029 year-end reconciliation payment, for a total settlement of just under $8 million.

Empower is one of four so-called PASSE organizations. These Provider-led Arkansas Shared Savings Entities contract with the Arkansas Department of Human Services (DHS) to pay for services for clients.

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