VT settles claims against economist Jonathan Gruber

The Vermont Attorney General's Office believes a health care economist submitted at least two false invoices to the state in 2014, but has agreed to drop the claims in a $90,000 settlement.

Jonathan Gruber, a professor at the Massachusetts Institute of Technology, won a state contract in 2014 to conduct economic modeling for Vermont's proposed single-payer health care system.

Gruber submitted two bills for $100,000 in September and October 2014, claiming that he worked 100 hours and that his research assistant worked 500 hours during each period. The state paid the bills but retained a total of $40,000, which was expected to be paid when the work was complete.

More:Outgoing AG Sorrell leaves unfinished work

February 2015:Gruber billing referred to Vermont attorney general

January 2015:Auditor: Invoices unsupported from Vt. health 'expert'

November 2014:Vermont paychecks stop for consultant Gruber

State investigators later learned that the invoices were inaccurate. Gruber's research assistant would have had to work 12 to 16.7 hours per day to make the numbers work. 

In November 2014, a video surfaced of Gruber saying that the Affordable Care Act passed because of "the stupidity of the American voter." Gov. Peter Shumlin called the comments "reprehensible and outright shocking," and Vermont changed Gruber's contract so that only his research assistants would be paid for the remainder of the work.

Gruber later billed Vermont $50,000 for work by his research assistants.

In February 2015, State Auditor Doug Hoffer raised questions about Gruber's bills and asked the Attorney General's Office to investigate.

More than two years later, the Attorney General's Office has announced that it believes Gruber's bills violated the Vermont Civil False Claims Act. Under that law, the state could have pursued a civil penalty, plus three times the amount of damages to the state and the costs of the state's investigation or prosecution.

Instead, under the settlement, Gruber has agreed to drop his claim to the $40,000 that was retained under his contract with Vermont and the $50,000 that would have been paid for his research assistant's work. Vermont has agreed to drop its claims under the Vermont Civil False Claims Act.

Read the settlement here.

When contacted by email Tuesday, Gruber declined to comment.

The settlement says that "Dr. Gruber denies liability in general and specifically denies that he violated the Vermont False Claims Act, or any other state or federal law, regulations, or rules, including the common law."

Gruber signed the settlement on May 10. Assistant Attorneys General Megan Shafritz and John Treadwell signed the settlement on June 8.

Representatives of the Attorney General's Office could not be reached for comment Tuesday.

Contact April McCullum at 802-660-1863 or amccullum@freepressmedia.com. Follow her on Twitter at @April_McCullum. Do you have a breaking news tip? Call us at 802-660-6500 or send us a post on Facebook or Twitter using #BFPTips.