Transportation Companies Settle $13 Million Medicaid Fraud Case

Albany, NY – Sixteen transportation companies will collectively pay $13 million to settle allegations of defrauding Medicaid by submitting false or inflated claims for ride transportation to medical appointments. The settlements are part of an ongoing investigation by New York’s Attorney General Letitia James, which has raised serious concerns about billing practices among over 50 taxi and transportation companies throughout the state.

The companies involved in the recent settlements were accused of multiple fraudulent activities, including billing for rides that never occurred, inflating mileage claims, and submitting false claims for toll expenses. Some notable examples of fraudulent activity involved one company claiming a driver traveled over 2,100 miles in a single day, a distance equivalent to traveling from New York to Utah.

The settlements varied in size, with the largest payment of nearly $4.8 million made by Bronx-based American Base No. 1, which significantly inflated mileage claims beyond actual odometer readings. Other companies included Agape Luxury Corp and NBT Transportation, which paid $2.5 million and $1.5 million, respectively, for similar violations.

In January, Attorney General James sent cease-and-desist letters to 54 companies suspected of engaging in fraudulent claims related to Medicaid. Following this action, the state has initiated lawsuits against seven additional companies that continued to submit these questionable claims despite receiving warnings. Notable companies involved in these lawsuits include Green Cab BNY and Dutchess Black Car Service. The state is seeking substantial damages from these firms, further emphasizing its commitment to addressing Medicaid fraud.

The investigations carried out by New York’s Medicaid Fraud Control Unit, which operates with a budget of $70 million, have already led to the conviction of two individuals associated with the fraud. Investigators have discovered that some of the implicated transportation companies were found to have provided kickbacks to patients, incentivizing them to use their services, thereby complicating the fraud situation further.

The ongoing investigations and resulting settlements highlight a critical issue in the healthcare system, particularly regarding the protection of vulnerable populations that rely on Medicaid for essential services. Medicaid fraud significantly undermines the program’s integrity, ultimately risking the availability of resources for those in genuine need.

This large-scale effort to combat Medicaid fraud signifies the state’s dedication to pursuing accountability among transportation companies and safeguarding taxpayer money. By taking legal action and securing settlements, the Attorney General’s office aims to deter future fraudulent practices and restore trust in the Medicaid system.

As investigations continue, state authorities remain vigilant in identifying and prosecuting those who exploit the Medicaid program. The commitment to combatting fraud not only protects state resources but also ensures that individuals who depend on these services receive the support they require in times of need.