BABYLON, NY – New York Attorney General Letitia James has uncovered widespread Medicaid fraud involving medical transportation companies across the state, including five based on Long Island. These companies are accused of exploiting a program designed to provide essential healthcare support for low-income residents.
The investigation revealed that over 50 companies statewide engaged in fraudulent practices, leading to the issuance of “cease and desist” notices. The Attorney General highlighted the extent of the schemes during a recent news conference.
“Transportation companies are billing Medicaid for rides and tolls that never occurred, costing New York taxpayers tens of millions of dollars annually,” James said.
Fraudulent Practices Target Vulnerable Populations
The fraudulent activities have included submitting fake claims for non-existent rides, inflating costs with false toll charges, and employing unlicensed drivers. In some cases, companies offered illegal kickbacks to Medicaid recipients, particularly targeting individuals struggling with substance use disorders, in exchange for their participation in fake billing schemes.
“This isn’t just theft of taxpayer dollars,” James emphasized. “It exploits some of our most vulnerable neighbors. These funds are meant to provide legitimate medical transportation and healthcare for the 7.5 million low-income New Yorkers who depend on Medicaid.”
Financial and Legal Consequences
The cost of the fraud is staggering, with an estimated loss of tens of millions of dollars annually. The Attorney General’s office has already recovered over $10 million through settlements and has secured 11 criminal convictions related to the schemes. Perpetrators could face steep fines and prison sentences.
Oversight and Call for Reform
James acknowledged that a lack of oversight has allowed these fraudulent activities to proliferate within the Medicaid transportation sector. The federal government estimates that over 5% of Medicaid payments are improper, highlighting the need for systemic reforms.
“These schemes jeopardize the integrity of our Medicaid program,” James said, calling for stronger safeguards to ensure taxpayer dollars are spent as intended.
The Attorney General’s office has not disclosed the names of the Long Island companies under investigation but reiterated its commitment to holding fraudsters accountable. With Medicaid transportation funding under scrutiny, reforms are expected to follow, aiming to protect both the program and its beneficiaries from future exploitation.
