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NY Medicaid Probe Settled For $18 Million

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Eric Schneiderman (Photo/ericschneiderman.com)

Eric Schneiderman (Photo/ericschneiderman.com)

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ALBANY, N.Y. (AP) — New York Attorney General Eric Schneiderman has settled an investigation into alleged Medicaid fraud by a provider of disability services and three top officials for $18 million.

According to Schneiderman, the Young Adult Institute, the state’s largest provider of residential services, for a decade inflated expenses reported for reimbursement, including allocating some employee costs to sites and programs where they never worked.

The yearlong investigation followed a whistleblower complaint. About $11 million will be returned to the state Medicaid program.

The institute denies wrongdoing, saying there was no intention to seek undeserved funds and that settling is less costly and disruptive than protracted litigation.

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 This material may not be published, broadcast, rewritten or redistributed.)

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