Prevent fraud and avoid being scammed


New York Medicaid Fraud Highlights and Criminal Liability

Picture this: you're a health care provider.
Your business largely depends on MedicaidAmong New York Medicaid Providers involved
billing. In fact, Medicaid pays your bills.with New York Medicaid Fraud are medical and
Your business is booming and then one day youdental offices, "ambulette" transportation
get a letter or a call from The Office ofcompanies, hospitals, nursing homes,
Medicaid Management or an Attorney General'spharmacies, school districts officials, and
Office. They tell you they investigateeven  retailers.
certain claims made by your office. They ask
you for your billing records and your moodNew York Medicaid Fraud cases may be
suddenly is not the same it was 5 minutesinvestigated by the Office of Medicaid
ago. Assuming the investigators have reasonsManagement, the Office of the Attorney
not be impressed with your Medicaid billingGeneral, the local law enforcement, or even
practices, you will need a lot of hope andfederal investigators. Because the problem
maybe some serious help because serioushas gotten out of hands lately, Attorney
trouble  is  probably  on  the  way.General Cuomo and the local district
attorneys are really cracking down on New
New York's Medicaid program has been fundedYork Medicaid Fraud. According to the April
more than 40 years ago and what it presently30, 2008 Attorney General Office's report,
is may be defined as a cash cow or a "honeyNew York had recover $112,5 millions in
jar" that attracts all kinds of money-lovingMedicaid  fraud  recoveries  in  2007.
bees. New York Medicaid enrolls millions of
people and spends over $40 billion a year forThe latest in the string of New York Medicaid
everything from medical care toFraud indictments is the prosecution of B&H
transportation to adult daycare to paying forHealth Care Services, Inc., (Nursing
shoes, diapers, etc. Because may MedicaidPersonnel Home Care), a Licensed Home Care
programs were so easy to exploit, New YorkService Agency and half a dozen of its
Medicaid fraud became quite rampant andshareholders and managers who managed to bill
uncontrollable. It became an industry inover  $30  million  in  Medicaid  fees.
itself and fortunes were made on Medicaid
Fraud.Providers accused of New York Medicaid Fraud
face various fraud-related charges as well as
There are several ways in which Medicaidcivil suites claiming damages. In the case of
Fraud can occur. The most popular method ofB&H Health Care Services, for example, the
Medicaid fraud with which defense attorneysindictment contains charges of Grand Larceny
routinely deal is billing for services thatin the First Degree (a Class B felony that
were not provided. In fact, some providerscarries a mandatory minimum sentence of 1
manage to bill millions of dollars in feesyear and a maximum sentence of 25 years'
for services they have never performed. Theimprisonment) and charges of Offering a False
next forerunner is double billing (billingInstrument for Filing in the First Degree (a
Medicaid after private insurance and/or theClass E felony that carries a maximum
recipient have already paid for services).sentence of 4 years' imprisonment.) The civil
Unnecessary procedures and appointmentssuite filed by the state demands treble
billed  to  Medicaid  are  popular,  too.damages  of  $90  million.
Many providers find themselves in hot waterIf it is a federal investigation, charges and
because they have unlicensed personnelpotential consequences, both criminal and
perform services that may only be provided byfinancial,  could  be  even  more  severe.
licensed persons as per Medicaid regulations
and bill Medicaid as if the professional doSo, let's go back to the beginning. You get
the work. Health care providers routinelythat letter or a phone call. Your next steps
overcharge Medicaid by inflating time theyare limited to telling the investigators to
actually  spend  on providing their services.disappear from your life, telling them all
they want to hear, or telling them that your
On occasions, providers engage in feeslawyer will contact them for you. Let me end
sharing with other provider. This meanswith a banality: if you are accused or
referring patients to other offices that billinvestigated for Medicaid Fraud, it is not
Medicaid and share the reimbursement paid bythe time to do it yourself.
the  Medicaid  program.



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