Attorney General's Office Resolves Allegations Against Lamoille County Mental Health Services

The Attorney General's Office today announced a settlement with Lamoille County Mental Health Services (LCMHS), resolving allegations that LCMHS did not provide adequate disclosures and information to the caregivers for two Medicaid beneficiaries, placing both the caregivers and the clients at increased risk of harm.

The settlement resulted from an investigation conducted by the Attorney General's Medicaid Fraud and Residential Abuse Unit (MFRAU) and requires LCMHS to pay $31,523, provide training to staff, and undertake certain compliance measures.

MFRAU's investigation of LCMHS began following a referral from the Department of Disabilities Aging and Independent Living (DAIL), and found a variety of documentation failures by LCMHS. In one case, MFRAU found that LCMHS failed to provide a timely Individual Support Agreement, Behavior Care Plan, and written Peggy's Law notice-a law requiring designated agencies to provide behavioral and medication information to home providers and workers caring for individuals in the mental health system-to a respite care provider providing patient care. In another case, MFRAU found material inaccuracies in a client's Peggy's Law disclosure notice, Behavior Support Plan, and certain risk assessments for a patient. In connection with the settlement, LCMHS is launching a training program on Peggy's Law disclosure obligations. LCMHS is also undertaking a review of its clients' behavior support plans and risk assessments to ensure their accuracy. LCMHS has also committed to reviewing its clients' supervision requirements and behavioral interventions with caregivers in detail.

If you suspect Medicaid fraud, please submit a report using MFRAU's online reporting form.

The Medicaid Fraud and Residential Abuse Unit receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $1,497,780 for Federal fiscal year FY 2026. The remaining 25 percent, totaling $499,260 for FY 2026, is funded by the State of Vermont.