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NYC and State to Repay Over 1/2 Billion in Alleged False Medicaid Claims

July 21, 2009

Settling whistleblower allegations that they “knowingly submitted, or caused to be submitted, false claims for reimbursement for school-based health care services,” New York State has agreed to return $440 million and New York City has agreed to return $100 million to the U.S. Medicaid program.  The alleged false claims were “primarily for speech therapy and transportation, provided to Medicaid eligible children from 1990 to 2001,”  the DoJ announced today. The settlement is a record federal recovery for the Medicaid Program. The whistleblower — an upstate NY speech therapist who alerted HHS that the state and city were submitting false claims for unqualified speech therapy services — will receive $10 million from the settlement.

To report Medicaid fraud or other false claims violations, contact Frohsin & Barger.

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