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New York Medicaid Fraud Highlights and Criminal Liability

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




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