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Feds Sue NYC, Saying City Committed Medicaid Fraud

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Generic Hospital Bed File Photo (credit: CBS 2)

Generic Hospital Bed File Photo (credit: CBS 2)


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NEW YORK (AP) – The federal government is suing the city of New York, saying it committed Medicaid fraud by overcharging the government for 24-hour care services over the last decade.

The government in a lawsuit filed Tuesday in federal court in Manhattan seeks civil penalties and damages against the city. It says the city routinely reauthorized 24-hour continuous personal care services for applicants without obtaining the required local medical evaluation.

The lawsuit said city administrators also overruled the local medical director when the director decided continued care was inappropriate.

A federal prosecutor said in a release that the charges were serious and reflected “a systemic failure to responsibly administer the Medicaid program.”

A message left with a spokeswoman for the city law office was not immediately returned.

(Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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