An Eden Prairie acupuncturist is charged with defrauding Minnesota’s Medical Assistance (Medicaid) program out of over $1.6 million through her business, Chinese Acupuncture and Herb Center (CAH), according to the Minnesota Attorney General’s office.
Xiaoyan Hu, 60, is charged by criminal complaint in Hennepin County District Court with 17 felony counts of theft by false representation. If convicted of even one of the counts, Hu could face a maximum sentence of 20 years in prison.
From March 4, 2016 through June 25, 2020 CAH operated throughout the Twin Cities, including in Edina, Minneapolis, St. Paul, and Burnsville. Hu, a licensed acupuncturist, owned the clinics, provided acupuncture services to clients herself, and supervised other acupuncturists and employees she hired to operate the clinics, according to a March 3 news release from Attorney General Keith Ellison’s office.
The Attorney General’s Office’s Medicaid Fraud Control Unit (MFCU) conducted a two-year investigation into CAH’s business practices. Hu is charged with overbilling for acupuncture services, billing for services not provided, and billing for acupuncture services provided in a client’s home without the requisite prior authorization for a home visit.
Charging documents accuse Hu of defrauding UCare of nearly $1.1 million, Medica of $271,942, Blue Cross Blue Shield of $209,848, HealthPartners of $164,485, and the Minnesota Department of Human Services of $13,286, according to reports by WCCO.