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$13M Medicaid Scam: NY Transport Companies Stole Millions In Taxpayer Dollars, AG Says

Several New York medical transport companies, including some in the Hudson Valley and New York’s Capital Region, are being forced to pay back millions of dollars after a sweeping Medicaid fraud investigation by the state, officials announced.  

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Ben Crnic
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The enforcement effort, revealed Monday, June 30, targeted 25 companies across the state, including businesses in Westchester, Dutchess, Orange, Columbia, Albany, and Saratoga counties. Sixteen companies have agreed to repay over $13 million in stolen Medicaid funds, and seven others are now facing lawsuits, New York Attorney General Letitia James said on Monday. 

James said the fraud schemes included billing Medicaid for fake trips, fake tolls, inflated mileage, and even paying vulnerable patients kickbacks to request rides they never used. 

"When companies make up fake bills and exploit patients to overcharge Medicaid, they take resources away from a program that allows the most vulnerable New Yorkers to get health care," James said in a statement on Monday. 

The companies involved in the scheme included: 

  • Buzz Transport, a Columbia County company based in Hudson, paid $363,995 to settle allegations that it billed Medicaid for fake tolls;
  • Shamrock Transportation, based in Orange County, paid $147,680 for similar toll-related fraud;
  • Westchester-based U.S. Trips and Trade, which paid $500,000 to resolve allegations of inflated and fake toll claims;
  • LaGrangeville-based Dutchess Black Car Service was sued for submitting claims for trips that never happened and tolls that were either fake or inflated;
  • Westchester County Black Car Service, which shares the same address, was also sued. 

Combined, the lawsuits seek more than $3.4 million in damages and penalties.

Two Capital Region companies also reached settlements:

  • Angel Medical Transportation, based in Schenectady, paid $1.1 million to settle claims that it billed for trips that didn’t happen and used unlicensed drivers;
  • A Nice Ride, based in Colonie, paid $28,075.43 for allegedly inflating tolls and billing for unprovided services.

Another company, TemboCare Transportation Express in Saratoga County, was sued for falsifying pickup and drop-off locations and misusing a state worker’s license information. That lawsuit seeks nearly $295,000 in damages. 

"My office launched a sweeping investigation of the medical transportation industry to root out fraud, and we are getting results," James said in her announcement on Monday, continuing: "From Buffalo to the Bronx, we’re holding scammers accountable and returning millions of dollars in stolen funds to Medicaid, a taxpayer funded program." 

The ongoing effort includes criminal convictions, civil lawsuits, and cease-and-desist letters. 

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