New York Attorney General Letitia James has cracked down on transportation companies across the state for defrauding Medicaid, with more than $13 million to be reclaimed following a series of investigations. The crackdown targeted 25 companies for their involvement in billing schemes aimed at swindling funds intended for Medicaid patients' transportation to medical appointments, according to a press release from the Office of the Attorney General (OAG).
In January, Attorney General James announced new investigations into Medicaid-reimbursed transportation services. These investigations resulted in 16 companies agreeing to pay back over $13 million. In addition to these settlements, the OAG has launched new lawsuits against seven companies and has secured the convictions of two individuals linked to fraudulent activities, as reported in the OAG statement. The fraudulent tactics these companies employed included billing for non-existent trips, inflating mileage claims, and using unlicensed drivers, among others.
The Medicaid Fraud Control Unit (MFCU) played a central role in uncovering these schemes, which ranged from fake billing for rides and tolls to kickback arrangements with vulnerable Medicaid recipients. One company in particular, Bronx-based American Base No. 1, will repay close to $4.8 million after investigations uncovered inflated mileage on their billing compared to actual vehicle odometer readings. In one case, a driver claimed 96 unique trips totaling over 2,000 miles in a single day.
Alongside the financial settlements, the MFCU's efforts also led to legal action against several individuals involved in the fraud. David Moore, 56, of ASAP 2, and Jose Ortiz, 63, of American Base, plead guilty to charges related to Medicaid fraud, while James Bessell, 65, owner of Jim Jim Rentals, faces multiple charges after allegedly causing Medicaid to pay over $1 million for services never provided, the OAG described. Furthermore, these cases of fraud waste taxpayer dollars and exploit the Medicaid system, which is designed to serve the health needs of the most vulnerable populations.
Those in need of Medicaid transportation services and wish to report suspected fraud can contact the MFCU hotline at (800) 771-7755 or file a confidential complaint online. For legitimate Medicaid transportation services in New York, contact numbers and the Medical Transportation Broker’s website have been provided by the Office of the Attorney General for residents in NYC, Long Island, Westchester, and Upstate regions.
