Busted! Medicaid fraud in Kansas caught by Attorney General Derek Schmidt

LAWRENCE – A woman from Lawrence has been ordered to repay the Kansas Medicaid program more than $5,000 for filing what the state alleged were false billing claims, Kansas Attorney General Derek Schmidt said today.

Terri Lisa Schwager, 56, of Lawrence, agreed to a consent judgment approved August 19 by Douglas County District Court Judge Mark Simpson. Schwager agreed to repay the Kansas Medicaid program $5,085.62 to resolve the state’s civil lawsuit alleging violations of the Kansas False Claims Act. Schwager also agreed to pay $5,085.62 in fines and $2,700.35 for investigative costs incurred by the Medicaid Fraud and Abuse Division of the attorney general’s office.

The case was investigated by the Medicaid Fraud and Abuse Division of Schmidt’s office. Investigators determined that Schwager served as the personal care attendant for her adult son, who is a Medicaid beneficiary. The investigation revealed that between January 1, 2018, and March 31, 2022, she had provided her confidential user information to her son, who logged into an app 91 times indicating that his mother was providing services. Investigators determined that Schwager was in fact working as an emergency room nurse in Olathe at the times the claims were logged.