Indiana Attorney General Greg Zoeller says a nursing home company will pay $376,000 to the state and federal governments over accusations that it submitted ineligible bills to Medicaid.

Zoeller said Monday that the bills from American Senior Communities LLC were for the work of seven employees who have been excluded from the Medicaid program.

A telephone message seeking comment was left for the Indianapolis company after business hours Monday. It has denied liability.

Zoeller says the federal government excludes health care workers who are convicted of various crimes from participating in Medicaid and other federally funded health programs

He says the settlement is the largest his office has received in a Medicaid excluded-provider case to date. He says the state's share of the settlement is $130,000.