Attorney General James Launches Crackdown on Medicaid Transportation Fraud

New York Attorney General Letitia James announced a major investigation targeting Medicaid transportation companies involved in fraudulent billing practices on Wednesday, January 8th. The investigation revealed that at least 55 companies across New York State have been submitting false claims to Medicaid, costing taxpayers tens of millions of dollars annually. Fraudulent activities included billing for non-existent rides, inflating mileage, and using unlicensed drivers.

Attorney General James emphasized the gravity of the fraud, highlighting how it diverts critical resources away from vulnerable populations who rely on Medicaid. “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.” In some instances, companies offered kickbacks or cash incentives to patients, particularly those with substance use disorders, to participate in these schemes.

In response to these findings, James’s office issued cease-and-desist letters to the identified companies, warning them to halt fraudulent practices immediately or face severe legal consequences. She underscored the state’s commitment to prosecuting offenders, which could result in significant financial penalties and prison sentences for those involved. The crackdown has already led to four settlements with transportation companies, resulting in the recovery of over $847,000 for the state.

The investigation is part of a broader effort by the Attorney General’s office to combat Medicaid fraud. Over the past several years, James’s office has secured $10 million in repayments and achieved 11 criminal convictions related to similar schemes. Despite these efforts, James noted that fraudulent activities in the Medicaid transportation sector persist, necessitating continued enforcement actions.

As part of the state’s strategy to curb future fraud, James plans to collaborate with legislators in Albany to implement reforms in the Medicaid transportation program. While specific proposals have yet to be outlined, James assured that her office would advocate for stronger oversight and accountability measures to protect public funds.

The announcement has drawn widespread support from healthcare advocates and government officials. They praised James’s dedication to safeguarding Medicaid resources and ensuring that taxpayer money is used appropriately to serve those in need.