There’s an epidemic of fraud among companies that bill Medicaid to take patients to medical appointments, Attorney General Letitia James said on Wednesday.
James sent cease-and-desist letters on Wednesday to 54 state companies that her office believes are involved in Medicaid transportation fraud, including five in New York City.
James announced settlements with four upstate companies that have agreed to return more than $847,000 to the state, and cited multiple transportation companies that have previously been found guilty of Medicaid fraud. But she did not share the full list of companies that received letters.
Investigations by the attorney general’s office have found that some New York companies illegally profit off of Medicaid by billing for rides that never took place or for nonexistent tolls. Others fraudulently extend the mileage of trips, use unlicensed drivers or offer Medicaid recipients kickbacks for using their services.
Some transportation companies have even targeted Medicaid recipients with substance use issues and offered them money or drugs to participate in their billing schemes, James said at a press conference.
“ We are here to send a clear message to any company engaged in these fraudulent schemes,” James said. “Stealing from Medicaid is wrong and you will be caught. Stealing from New Yorkers is a crime and you will be prosecuted.”
The attorney general’s office has been investigating this type of fraud for several years and has secured $10 million in repayments from transportation companies, along with 11 criminal convictions.
But James said the schemes haven’t let up.
The cease-and-desist letters warned that failure to comply with the law could result in financial penalties or criminal charges.
James said she plans to push for reforms to the Medicaid transportation program in Albany in the new legislative session, but didn’t share any specific proposals.
