Beshear, Federal Authorities Secure Health Care Fraud Pleas in Breathitt County

FRANKFORT, Ky. (Aug. 9, 2018) – A Breathitt County ambulance company, its owner and two employees have pleaded guilty to health care fraud in federal court, Attorney General Andy Beshear and his Office of Medicaid Fraud and Abuse announced today. 

Hershel Jay “Jay” Arrowood, Lesa Arrowood, Terry Herald and Arrow-Med Ambulance Inc. entered pleas July 31 right before their trial was to begin, according to federal officials.

They entered pleas for falsely billing Medicare and Medicaid to transport patients for non-emergency services who did not qualify for the programs.

A Medicaid fraud investigator in Beshear’s office worked on the Arrow-Med investigation and prosecution with several federal agencies, including the United States Attorney for the Eastern District of Kentucky. 

According to federal officials, the three individuals and the company all admitted wrongdoing and because of their conduct, defrauded Medicare and Medicaid nearly $250,000. Their sentencing is scheduled for Oct. 29.

“I am proud of the work of our Medicaid fraud unit and our partner agencies, especially the U.S. Attorney’s office that prosecuted this case, for their continued commitment to protecting Kentucky families and seniors from anyone who would defraud such critical programs,” Beshear said. “We take our role as a Medicaid watchdog very seriously and work hard to protect this vital service for those in need.”

Since taking office, efforts by Beshear’s Office of Medicaid Fraud and Abuse through civil settlements and criminal restitution have resulted in over $74 million in obligations to the state and federal Medicaid program, Medicare, Tricare, commercial payers and other entities.

The Attorney General’s tip line for reporting allegations of Medicaid fraud is 1-877-228-7384.