State and federal officials have reached a $1.5 million settlement with a former Connecticut group home operator that was alleged to have submitted improper Medicaid claims for interest expenses.

REM Connecticut Community Services operated 28 group homes in the state for more than 15 years after entering into contracts with the Department of Developmental Services and Department of Children and Families. The group homes provided residential and day services for the intellectually disabled and to at-risk youth. However, REM stopped operating the homes in 2014, claiming the state did not reimburse the company enough for the services provided. REM is a national company operating in 35 states.

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