Alabama Woman Charged for the 2nd Time with TennCare Fraud

NASHVILLE, Tenn. - An Alabama woman is charged a second time with TennCare fraud for falsely reporting her residency in order to obtain healthcare insurance benefits through the state’s TennCare program.

The Office of Inspector General (OIG) today announced the arrest of Keily Phillips, 39, of Bridgeport, Alabama. A Marion County indictment charges Phillips with TennCare fraud and theft of services, accusing her of obtaining TennCare healthcare insurance benefits by fraudulently reporting to the state that she and her minor children resided in Tennessee, in order to be eligible for TennCare benefits.  After Phillips’ initial arrest, she continued to use her TennCare benefits.

Phillips was first arrested in October 2014 after a Marion County indictment for TennCare fraud, theft of services, perjury and fraud of the Supplemental Nutrition Assistance Program (SNAP). Those charges accused her of obtaining medical assistance and SNAP benefits by fraudulently reporting her residency information.

“We intend to prosecute anyone, regardless of where they live, if they lie to get enrolled in TennCare,” Inspector General Manny Tyndall said.  “People who cross the state line in order to obtain benefits reserved for Tennessean’s aren’t just stealing; they’re compromising the integrity of an important program.”

Both TennCare fraud and SNAP fraud are Class E felonies, carrying a sentence of up to two years in prison. Theft of services over $10,000 is a Class C felony punishable by three to six years in prison.  Theft of services over $1,000 is a Class D felony which carries a sentence of up to four years in prison.  District Attorney General J. Michael Taylor is prosecuting.

The OIG, which is separate from TennCare, began full operation in February 2005 and has investigated cases leading to over $3 million being repaid to TennCare, with a total estimated cost avoidance of over $163.6 million for TennCare, according to latest figures. To date, 2,382 people have been charged with TennCare fraud.

Through the OIG Cash for Tips Program established by the Legislature, Tennesseans can get cash rewards for TennCare fraud tips that lead to convictions.  Anyone can report suspected TennCare fraud by calling 1-800-433-3982 toll-free from anywhere in Tennessee, or log on to Office of Inspector General and follow the prompts that read "Report TennCare Fraud."