Arkansas psychologist indicted for allegedly defrauding Medicare, Blue Cross Blue Shield

LITTLE ROCK, Ark. — An Arkansas psychologist has now been indicted for defrauding Medicare and Arkansas Blue Cross and Blue Shield.

According to reports, 48-year-old Krameelah Banks owned and operated the Arkansas Behavioral Center (ABC). Banks treated some regular patients who received ongoing psychotherapy, but most of her patients were referrals who were seen just once for the purpose of receiving pre-surgical psychological evaluations

It was alleged that during the time between 2021 and 2023, Banks billed for thousands of hours of psychology services that never happened by routinely charging Medicare and Blue Cross for ongoing psychotherapy in the names of persons who were referral patients seen only once, which in turn caused insurers to lose over $500,000.

The indictment of Banks