A Rutland doctor will pay about $84,000 to settle legal claims that he defrauded the state in order to collect more money than he was entitled to from the stateโ€™s Medicaid program.

Dr. Frank Buggiani, a podiatrist who practiced in Rutland between 2008 and 2013, will pay $67,643 to Vermontโ€™s Medicaid program and another $16,036 more to the state in a legal settlement announced Friday.

The money will settle the Attorney Generalโ€™s Officeโ€™s complaint in Rutland Superior Courtโ€™s Civil Division that he tried to charge Medicaid a higher rate for making custom orthotics than he charged to commercial insurance companies.

According to the Vermont Attorney Generalโ€™s Office, doctors can only bill Medicaid at a โ€œusual and customary rateโ€; that rate canโ€™t be any higher than the lowest rate the doctor charges commercial insurers or uninsured patients.

Instead, Buggiani billed Medicaid $275 per unit, or $550 per pair of orthotics, according to the settlement signed Oct. 5. He charged other payers as little $137.50 per unit, or $275 per pair of orthotics.

The state of Vermont paid Buggiani $213,252 for those Medicaid bills, according to the settlement. The state says it should have paid $137,789 for the orthotics, meaning it overpaid by $75,463.

โ€œDr. Buggiani cooperated with requests information and data related to the claims investigation,โ€ the settlement said. The agreement is meant โ€œto avoid the delay, expense, inconvenience, and uncertaintyโ€ of going to court.

Twitter: @erin_vt. Erin Mansfield covers health care and business for VTDigger. From 2013 to 2015, she wrote for the Rutland Herald and Times Argus. Erin holds a B.A. in Economics and Spanish from the...

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