February 24, 2023

Regional Home Care Must Pay $2.5 Million for Alleged MassHealth Overcharges

Lori Kalani, Bernard Nash

Cozen O'Connor

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Cozen O'Connor

Massachusetts AG Andrea Joy Campbell settled with Regional Home Care, Inc., a medical equipment supplier and service provider, to resolve allegations that the company’s billing and debt collection practices violated the state’s consumer protection law and regulations promulgated by the AG’s office and MassHealth, the state’s Medicaid program.
According to the AG’s office, Regional Home Care allegedly routinely sued MassHealth members for amounts not owed and amounts already paid by MassHealth, and unlawfully charged consumers for equipment return costs and court filing fees. The AG’s office also alleges that the company engaged in aggressive debt collection tactics, including making threats regarding the consequences of nonpayment, failing to inform consumers of legal rights to dispute their debts, and filing collection lawsuits in distant forums to more easily obtain judgments.
Under the terms of the settlement, Regional Home Care must pay $500,000 to the state and over $9,500 in refunds to MassHealth members, vacate certain consumer judgments, and undergo business practice changes, among other requirements.

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