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Doctor Settles Medicaid Fraud for $489K Amid Allegations

9/12/2025

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Story summary
  • Investigators determined that physician Terrace Mucha was aware or should have been aware of improper billing for drive-through COVID tests in Bend, Oregon.
  • She settled Medicaid fraud allegations for $489,000, asserting her actions were unintentional.
  • The Oregon Department of Justice condemned her actions as a breach of public trust.
  • Allegations included "upcoding" for services not provided to 3,800 low-income patients without COVID symptoms.
  • Mucha attributed her billing issues to inexperience with Medicaid and her community service during the pandemic.