Financial Firm With Hartford Office Pays Back Gov't For Violation: Feds

HARTFORD, CT — A financial consulting firm with a prominent Hartford office has paid back hundreds of thousands of dollars in connection with overbilling allegations against the military.

David X. Sullivan, U.S. attorney for Connecticut, said Monday that Mercer LLC, a consulting company with an office in Hartford, entered into a civil settlement agreement.

Sullivan said Mercury paid more than $450,000 to resolve allegations it overbilled the Defense Health Agency for work performed by certain employees and subcontractors.

According to Sullivane, clients were billed at rates higher than their educational backgrounds or experience levels permitted.

The Defense Health Agency manages TRICARE’s health benefits program for service members and their families.

Before developing and implementing DHA’s managed care support and pharmacy services contracts, DHA sought subject matter expertise from outside the Department of Defense to ensure that beneficiaries receive high-quality care, Sullivan said.

Specifically, DHA competitively sought offers for Health Plan Innovative Support services from vendors.

In approximately April 2020, DHA and Mercer entered into a "blanket purchase agreement" for HPIS services.

DHA also awarded a contract to Mercer.

Under this task order, Mercer would provide qualified personnel with subject matter expertise relevant to the design of TRICARE programs.

This included labor categories that identified the education and experience qualifications, as well as the associated hourly billing rate, for personnel working under the contract.

Each month, Mercer invoiced DHA for labor expended under the BPA at hourly billing rates commensurate with the employees’ (or subcontractor employees’) designated labor categories and the education and experience associated with those labor categories, according to Sullivan.

The government contends that, from May 7, 2020, through Aug. 2, 2023, Mercer billed DHA for the efforts of 11 employees working under the contract at labor rates for which those employees did not have the requisite educational background or experience levels.

Mercer investigated and disclosed to the government these incorrect contract billings.

To resolve claims arising under the Contract Disputes Act and the common law theories of breach of contract, payment by mistake, and unjust enrichment, Mercer paid the government $456,796.50.

For more information on the case, click on this link.