New York Attorney General Announces Major Takedown of 25 Transportation Companies for Medicaid Fraud

Strategic Insights -

The New York Attorney General's Office, led by Attorney General Letitia James, has announced a major takedown of 25 transportation companies across the state for schemes to steal millions of dollars from Medicaid. The investigation, which was launched in January, has resulted in 16 transportation companies agreeing to pay back over $13 million in restitution. In addition, the Office of the Attorney General has filed lawsuits against seven transportation companies and secured convictions of two individuals and their companies for their roles in medical transportation fraud schemes.

Key Takeaways:

  • 25 transportation companies were taken down for Medicaid fraud schemes, including fake billing, inflated mileage, and kickback schemes.
  • 16 transportation companies agreed to pay back a combined $13 million in restitution.
  • The investigations uncovered cases of transportation companies exploiting vulnerable Medicaid recipients, including those in need of substance abuse treatment.
  • Attorney General James announced the takedown in a statement, saying, "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."
  • The Attorney General's Office used the Medicaid Fraud Control Unit (MFCU) to investigate the cases, led by Chief Auditor Dejan Budimir and Detectives led by Deputy Chief Ronald Lynch.
  • The investigations were conducted in collaboration with the US Department of Health and Human Services, the New York State Department of Health, and the Office of the Medicaid Inspector General.
  • Three individuals have been charged or convicted as a result of the investigations, including a 56-year-old man who pleaded guilty to Grand Larceny.

Statistics:

  • 25 transportation companies were taken down for Medicaid fraud schemes.
  • 16 transportation companies agreed to pay back a combined $13 million in restitution.
  • The investigations uncovered cases of transportation companies exploiting vulnerable Medicaid recipients, putting them at even greater risk.
  • The Medicaid Fraud Control Unit (MFCU) received a total funding of $70,502,916 for federal fiscal year (FY) 2025, with 75 percent ($52,877,188) awarded under a grant from the US Department of Health and Human Services and the remaining 25 percent ($17,625,728) funded by New York State.
  • The MFCU's hotline number for reporting Medicaid provider fraud is (800) 771-7755.

Sources:

  • Press Release from the Office of the New York State Attorney General, dated March 8, 2025.
  • Article from New York State Department of Health, dated February 12, 2025.
  • Data from the Medicaid Fraud Control Unit, dated February 2025.
  • Statement from Attorney General Letitia James, dated March 8, 2025.
  • Article from the New York State Attorney General's Office, dated January 2025.