In June, New York Attorney General (AG) Letitia James announced a major takedown of companies across the state, who schemed to steal millions of dollars from Medicaid. Earlier this year, James announced investigations into companies reimbursed by Medicaid for taking patients to and from health care appointments. The result: 16 companies will pay back more than $13 million.
The Office of the Attorney General (OAG) also filed new lawsuits against seven transportation companies for defrauding Medicaid and secured convictions for two individuals and their companies for their roles in medical transportation fraud.
“When companies make up fake bills and exploit patients to overcharge Medicaid, they take resources away from a program that allows the most vulnerable New Yorkers to get health care,” said James. “From Buffalo to the Bronx, we’re holding scammers accountable and returning millions of dollars in stolen funds to Medicaid, a taxpayer funded program.”
Medicaid reimburses authorized businesses for transporting patients to and from covered medical services. A licensed company can enroll with the state and is then randomly assigned trips for non-emergency medical appointments. The companies must use licensed drivers, proper vehicles, and bill only for services rendered. They can bill Medicaid for a base trip rate, plus an amount for mileage and tolls.
The OAG’s Medicaid Fraud Control Unit (MFCU) says companies’ schemes often involve billing Medicaid for fake trips, adding fake tolls to inflate costs and fraudulently extending the mileage of trips. In some cases, companies paid kickbacks to vulnerable Medicaid recipients in exchange for requesting transportation – including those in need of substance abuse treatment. In one extreme case, a driver claimed 96 unique trips, amounting to 2,158 miles, in just one day. Some companies used unlicensed, under-licensed or suspended drivers, while others submitted claims for transportation of deceased beneficiaries. One company used the driver’s license information for someone who was clocked in for duties elsewhere as a New York state employee.
James said the OAG has secured 16 settlements with transportation companies worth a combined $13 million, including:American Base No. 1, Agape Luxury Corp, NBT Transportation, Angel Medical Transportation, Lakeview Global, U.S. Trips and Trade, Buzz Transport, JD Express, Vic and Bay Care Service, Divine Hearts Transportation, Equaltrans, KFH Medicaid Transportation, Shamrock Transportation, Interstate Luxury Limousines, Lak Sam, and A Nice Ride.
Additionally, James announced lawsuits against seven transportation companies that were sent cease and desist letters earlier this year but failed to comply and continued fraudulent practices, including Green Cab BNY, Dutchess Black Car Service, Westchester County Black Car Service, Buffalo Taxi Services, Seaman Radio Dispatchers, TemboCare Transportation Express, and SMI Transportation.
If an individual believes they have information about Medicaid provider fraud or an incident of abuse or neglect of a nursing home resident, they can file a confidential complaint online or call the MFCU hotline at (800) 771-7755. If the situation is an emergency, call 911.
