Dentists Agree to $700,000 Settlement Over False Claims Allegations

Connecticut dentists have agreed to pay over $700,000 to settle allegations of submitting improper claims to the state’s Medicaid program, federal and state authorities announced on November 19.

Dr. Ivan Makar, formerly of Dent Plus Family Dentist in Stamford, and Dr. Oleg Losin, previously with L&M Family Dentistry in New Haven, were accused of violating both state and federal False Claims Acts by submitting claims tainted by illegal patient referral arrangements.

According to the U.S. Attorney’s Office for the District of Connecticut, the two dentists allegedly submitted claims to the Connecticut Medical Assistance Program (CTMAP) for dental services provided to Medicaid patients who had been referred to their practices through a third-party patient recruiting company. The investigation determined that these referral arrangements occurred between January 2019 and September 2020.

Healthcare authorities consider such arrangements problematic because they can incentivize unnecessary treatment and compromise patient care. The Connecticut Dental Health Partnership provider manual explicitly prohibits compensating referral sources on a per-patient basis, a rule designed to prevent financial considerations from influencing medical decisions.

“Patient referral kickback schemes undermine the integrity of our healthcare system,” said a spokesperson from the U.S. Attorney’s Office. “These arrangements can lead to unnecessary procedures and increased costs to taxpayer-funded programs like Medicaid.”

The settlement is significant for Connecticut’s healthcare oversight system, which has been increasingly vigilant about improper billing practices in recent years. Medicaid fraud enforcement has intensified nationwide, with federal and state authorities collaborating to recover funds improperly paid to healthcare providers.

Both dental practices involved in the settlement have since dissolved. Dent Plus Family Dentist in Stamford and L&M Family Dentistry in New Haven are no longer operational, according to public records. This pattern of practice closures following healthcare fraud investigations is not uncommon, as providers often struggle to maintain their businesses after facing substantial financial penalties and regulatory scrutiny.

The $714,446 settlement represents one of the larger recent recoveries in dental Medicaid fraud cases in Connecticut. Such funds are typically returned to the Medicaid program to support legitimate healthcare services for qualifying residents.

Healthcare fraud experts note that dental services have become an increasing focus for Medicaid fraud investigators in recent years. Unlike many medical specialties, dental procedures often involve more subjective treatment decisions and variable billing practices, creating opportunities for improper billing.

“Dental services present unique challenges for Medicaid oversight,” explained a healthcare compliance attorney not involved in the case. “The combination of high patient volume, varied treatment plans, and the potential for unnecessary procedures makes it an area ripe for scrutiny.”

While agreeing to the substantial settlement, the dentists did not admit liability as part of the agreement. Such settlements without admission of wrongdoing are common in healthcare fraud cases, allowing providers to resolve allegations without the expense and uncertainty of protracted litigation.

The Connecticut case highlights the ongoing challenges facing Medicaid programs nationwide. As one of the largest healthcare payers in the country, Medicaid remains vulnerable to various forms of improper billing and fraud schemes. Federal authorities estimate that improper Medicaid payments cost taxpayers billions annually.

State and federal authorities encourage healthcare professionals and the public to report suspected healthcare fraud to help maintain the integrity of public health insurance programs.