House committee announces fraud investigation into autism therapy firm
The House Committee on Education and the Workforce is investigating a Brooklyn-based autism therapy provider over allegations of excessive billing practices that may be driving up healthcare costs for workers and employers.
Committee Chairman Tim Walberg, R-Mich., and Rep. Rick Allen, R-Ga., requested extensive records from The Perfect Child LLC, a company that provides autism therapy services nationwide. The inquiry follows reporting that raised concerns about unusually large insurance claims and aggressive billing tactics in the fast-growing autism therapy industry.
“Employer-sponsored health plans provide coverage to 154 million Americans and represent a significant component of employee compensation,” the letter reads. “Plan fiduciaries have a responsibility to ensure that plan assets are managed prudently and exclusively for the benefit of plan participants and beneficiaries.”
“Allegations that health care providers may be submitting excessive charges, engaging in abusive reimbursement practices, or exploiting gaps in oversight raise significant concerns regarding the stewardship of plan assets,” the letter continues.
The lawmakers cited a Wall Street Journal investigation that documented cases of providers charging steep fees, inflating service hours, and pursuing payment directly from families when insurers refused reimbursement.
One widely reported example involved a New Jersey mother who received a bill exceeding $900,000 for her child’s therapy after initially being told there would be no out-of-pocket costs.
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