New York State initiated a crackdown on Medicaid transportation fraud, recovering more than $13 million from 25 companies implicated in defrauding the healthcare program. The investigation uncovered fraudulent practices such as fake billing, inflated mileage claims, and unauthorized drivers. Key recoveries included significant settlements from major companies like American Base No. 1 and Agape Luxury Corp. Seven additional lawsuits were filed against companies failing to comply with earlier warnings, and three individuals faced criminal charges for their involvement in fraudulent schemes.
New York State has announced a major statewide crackdown on Medicaid transportation fraud, recovering over $13 million from 25 companies accused of defrauding the Medicaid system.
The investigation targeted companies reimbursed by Medicaid for transporting patients, revealing fraudulent practices like fake billing and inflated mileage.
Attorney General James emphasized accountability, stating, "These companies exploited a system designed to help our most vulnerable residents; we're holding them accountable."
Among the largest recoveries was American Base No. 1, which paid $4.77 million after billing for impossible trips and paying kickbacks.
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