The Vermont Attorney General’s Office announced on Mar. 12 a settlement with United Counseling Service of Bennington County, Inc. (UCS), following allegations that UCS failed to provide adequate services and oversight, resulting in serious safety risks to Medicaid recipients and the public. Under the agreement, UCS will pay $483,464 to the State of Vermont and implement significant organizational reforms.
The case centers on failures by UCS in caring for certain developmental disability service recipients who posed public safety risks due to behaviors involving sexual violence or crimes against children. The investigation began in May 2023 after a complaint from the Department of Disabilities, Aging and Independent Living – Developmental Disabilities Services Division (DAIL-DDSD).
According to the Attorney General’s Office, at least ten cases were found where ongoing service and supervision failures created preventable risks for both service recipients and members of the public who interacted with them. The State alleges that UCS staff were aware of these issues but that leadership ignored or resisted efforts by DAIL to correct them.
Attorney General Charity Clark said, “The safety of all Vermonters is of the utmost concern in Medicaid fraud investigations and enforcement efforts, and I want to thank my team and our partners at the Department of Disabilities, Aging and Independent Living for their joint efforts in resolving this matter.” She added: “This settlement was designed to improve the safety of UCS service recipients and the safety of the public in the communities they serve.”
As part of corrective actions outlined in the settlement agreement, UCS must appoint an external oversight monitor, hire a new director of quality management for its division overseeing developmental services, and publicly report substantive corrections for up to three years. In December 2025, DAIL began steps toward removing UCS’s designation as a provider for developmental services contracts; this process is still underway.
The Medicaid Fraud and Residential Abuse Unit receives most funding from federal sources through a grant from U.S. Department of Health & Human Services totaling $1.5 million for fiscal year 2026; state funds cover about one quarter more than $499 thousand.
