Attorney General Gary King's office says investigators found about $34,000 in overbillings by a Santa Fe-based mental health provider but nothing to justify bringing fraud charges.
King said in a statement Tuesday there was "no actionable evidence of fraud" by Easter Seals El Mirador.
An executive with the group didn't immediately return a telephone message seeking comment.
The organization was among more than a dozen nonprofit providers of mental health services that had Medicaid payments suspended last year by the Human Services Department because of allegations of fraud and mismanagement.
Department spokesman Matt Kennicott said the agency will seek to recover overpayments, which could amount to hundreds of thousands of dollars.
The state contracted with Arizona companies to take over services previously offered by most of the New Mexico nonprofits.
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