NEW YORK – In a sweeping enforcement action, New York’s Attorney General announced charges and settlements against five Hudson Valley transportation providers accused of billing Medicaid for services that never occurred or were grossly inflated. The alleged schemes, which involved fictitious tolls and bogus trip claims, defrauded the state’s healthcare program of millions of dollars.
Major Settlements and Allegations
-
U.S. Trips and Trade (Westchester County)
Allegation: Submitted inflated and fabricated bills for non-existent Medicaid transportation services.
Resolution: Paid $500,000 to resolve the state’s claims without admitting wrongdoing. -
Buzz Transport (Hudson County)
Allegation: Billed Medicaid for fraudulent toll expenses.
Resolution: Paid $364,000 to settle the toll-inflation allegations. -
Shamrock Transportation (Orange County)
Allegation: Submitted false and inflated toll charges to Medicaid.
Resolution: Paid just under $148,000 to resolve the state’s claims.
Civil Lawsuits Seek Multi-Million-Dollar Penalties
-
Dutchess Black Car Service (La Grangeville)
Allegations: Charged Medicaid for trips that did not occur and for non-incurred or inflated tolls.
Action: Sued by the Attorney General’s office, seeking over $2.2 million in restitution and civil penalties. -
Westchester County Black Car Services (same address)
Allegations: Billed Medicaid for non-existent rides and fraudulent toll fees.
Action: Sued alongside Dutchess Black Car Service, with the state seeking over $1.1 million and additional civil fines.
Attorney General’s Statement
“Stealing from Medicaid harms some of New York’s most vulnerable residents,” said Attorney General [Name]. “These providers abused a system designed to ensure essential medical transportation. Today’s settlements and lawsuits send a clear message: we will pursue and hold accountable anyone who defrauds our public health programs.”
Impact on Medicaid and Vulnerable Patients
Medicaid covers non-emergency medical transportation for enrollees who lack reliable access to healthcare facilities. Fraudulent billing not only diverts critical funds but can also undermine the integrity and availability of services for patients in need. By targeting these schemes, the Attorney General aims to protect both taxpayers and Medicaid recipients who rely on honest providers for essential travel to doctors’ appointments, therapy sessions, and other healthcare services.
Broader Efforts to Combat Health-Care Fraud
This enforcement action is part of a broader initiative by the Attorney General’s office to crack down on healthcare fraud across multiple sectors. In recent years, the office has recovered tens of millions of dollars through investigations into fraudulent billing by pharmacies, home-health agencies, and other transportation providers. The state continues to encourage whistleblowers and industry insiders to report suspicious billing practices through the Medicaid Fraud Control Unit’s confidential tip line.
What to Watch Next
-
Ongoing Litigation: The lawsuits against Dutchess Black Car Service and Westchester County Black Car Services will proceed through state court, with potential financial penalties and injunctive relief under New York’s False Claims Act.
-
Further Investigations: Additional transportation companies may come under scrutiny as the Attorney General’s Medicaid Fraud Control Unit analyzes billing data for irregularities.
-
Policy Reforms: The state legislature is considering stricter oversight measures, including mandatory GPS logging of Medicaid-funded trips and enhanced auditing protocols.
By dismantling these fraudulent operations, New York takes a significant step toward safeguarding public funds and ensuring that Medicaid transportation services remain accessible to those who truly need them.
Leave a Reply