Lawyer Basic James revealed the findings of a significant Medicaid fraud investigation, reporting shady dealings amongst no less than 55 transportation firms statewide.
File photograph.
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State Lawyer Basic Letitia James stated Wednesday that her workplace uncovered no less than 55 transportation firms throughout the state have been billing Medicaid for non-existent rides, leading to an estimated lack of tens of hundreds of thousands of {dollars} annually to New York taxpayers.
The investigation, which has spanned a number of months, recognized that many firms inflated the mileage of their journeys and even billed for rides that by no means occurred.
Some firms went as far as to supply kickbacks to sufferers affected by substance use problems, successfully recruiting them into fraudulent schemes in change for money incentives.
“This fraud is very simple,” James stated. “Transportation companies are billing Medicaid for fake rides and tolls, costing New York taxpayers tens of millions of dollars every year. Money that should be used to fund health care for the most vulnerable New Yorkers.”
James burdened the intense nature of this fraud, highlighting how these fraudulent actions value taxpayers and put susceptible populations in danger.
“Not only is it the theft of taxpayers’ dollars, it exploits low-income individuals who are already in vulnerable positions,” she stated.
Current enforcement actions from the Lawyer Basic’s workplace embody shutting down a number of firms in Saratoga and Wensom counties that had been discovered to be using pretend billing practices.
In complete, 55 further transportation firms had been recognized as being concerned in fraudulent billing schemes, prompting the issuance of cease-and-desist letters, warning them of potential authorized motion and extreme penalties.
“We are putting these companies and the entire medical transportation industry on notice,” James stated. “If they do not immediately stop their fraudulent activities, they will face serious consequences, including prison time and steep financial penalties for their actions.”
The Workplace of the Lawyer Basic has already achieved some notable victories in its crackdown on fraud, recovering hundreds of thousands of {dollars} and prosecuting people chargeable for these schemes.
Along with the stop and desist notices, Lawyer Basic James introduced 4 new settlements with transportation firms for violations of Medicaid transportation guidelines that may return over $847,000 to the state.
“Fraud stops when bad actors know they will be caught stealing from New Yorkers,” she stated, vowing to proceed the investigation and prosecution of those that revenue from corruption within the healthcare system.
As New York approaches the upcoming legislative session, James indicated that her workplace would work carefully with lawmakers and the governor to hunt reforms that will assist curb such fraud sooner or later.
“Our investigations have sent offenders to prison and recovered millions of dollars for the state, and we will continue our efforts to protect Medicaid and ensure that resources are utilized for the health care needs of New Yorkers,” the Lawyer Basic stated.
For ongoing updates on this investigation and sources accessible for sufferers and suppliers, New Yorkers are inspired to go to the Lawyer Basic’s official web site, ag.ny.gov.
