Staten Island Company Settles Medicaid Fraud Allegations
Staten Island, NY – A Staten Island-based company is among over a dozen in New York that have settled allegations of Medicaid fraud.
On Monday, New York Attorney General Letitia James revealed that 16 carriers have agreed to a total settlement of $13 million following an investigation that uncovered fraudulent activities, including the submission of fake claims to illegally obtain Medicaid funds.
“When businesses create false invoices and overcharge Medicaid, they effectively divert resources away from essential healthcare for New Yorkers who truly need it,” James stated. “My office has initiated a thorough investigation into the medical transportation sector to eliminate fraud, and we are achieving results. From Buffalo to the Bronx, we are holding accountable those who exploit the system, redirecting millions of misappropriated funds back to Medicaid.”
One of the companies involved is Vic and Bay Care Service, which has agreed to pay $250,000 to settle allegations of submitting a Medicaid claim for a transportation service that never occurred.
Efforts to reach the company for comment were unsuccessful.
State-registered taxi companies that qualify as healthcare providers are responsible for transporting Medicaid patients to and from approved healthcare services. They receive reimbursements for mileage and tolls on top of the standard travel fees.
The Attorney General’s Medicaid fraud management team investigated various businesses across the state for systematically scamming the system, which included charging Medicaid for non-existent trips, inflating travel mileage, using unlicensed drivers, and providing kickbacks to Medicaid recipients.
The most significant violator was American Base No. 1 from the Bronx, which agreed to pay over $4.7 million to resolve both civil and criminal claims.
“The mileage reported by American Base drivers was grossly exaggerated, as evidenced by vehicle odometers during mandated NYC Taxi and Limousine Commission inspections. Some drivers falsely claimed multiple unique trips in a single day. According to the Attorney General’s office, taxi services also admitted to receiving bribes from drivers to solicit rides from American Base,” reported an official.
Medicaid scams have been in the spotlight, especially as Congress contemplates possible cuts to the program.
The federal budget settlement bill, termed by Republicans as “one big beautiful bill law,” is projected to reduce federal Medicaid funding by $793 billion, resulting in about 7.8 million more uninsured people nationwide, according to the Congressional Budget Office.
The potential loss in compensation may stem from various provisions in the proposed legislation, which include stricter work requirements, citizenship checks, and enhanced eligibility verification processes.
Critics have labeled the proposed bill as a tax cut for the wealthy, arguing that it would restrict access to vital Medicaid services for millions of at-risk Americans. In contrast, Republicans maintain that these adjustments are aimed at combating fraud and reforming the system.
“New York is unfortunately a poster child for Medicaid waste and fraud,” a spokesperson mentioned. “This is precisely why my colleagues and I are collaborating with President Trump to address this issue. We are fed up with news about bad actors stealing from taxpayers, harming those with disabilities, and exploiting vulnerable citizens in need of medical services.”
