Connecticut has joined a federal-state settlement with Pediatric Services of America Inc. (PSA) to resolve allegations that the company inappropriately failed to return overpayments received from state Medicaid programs as well as other federally insured health programs.

PSA is also alleged to have overcharged for home nursing services by improperly rounding-up claims to the nearest whole hour. The Georgia-based pediatric and home-care company has agreed to pay the states and the federal government $2.7 million.

The states claimed that PSA knowingly failed to return overpayments received from state Medicaid programs on claims submitted to state Medicaid programs between January 2007 and June 2013. PSA is also alleged to have created a billing system that double rounded minutes employees worked, which would create an overcharge to states’ Medicaid programs and overstate the length of time services were provided.

As part of the settlement, PSA has also agreed to enter into a corporate integrity agreement with the United States Department of Health and Human Services, Office of the Inspector General, which will closely monitor future marketing and sales practices of the company.