New York Medicaid Transport Plagued by Fraud, With Drivers Scamming up to $196M

New York drivers are accused of bilking up to $196 million from a badly managed Medicaid transportation program.

A federal audit by the Department of Health and Human Services found the shocking amount had been paid to transport companies enrolled in the Non-Emergency Medical Transportation (NEMT) program, but rides “did not meet or may not have met Medicaid requirements.”

The 2022 report claimed almost half of $445 million in taxpayer money paid out in 2018 and 2019 in New York City was mismanaged. This included rides that were not properly documented, drivers who were not properly licensed, rides that weren’t pre-authorized by a medical practitioner and services which were billed but never happened, according to the report.

The federal government demanded New York State immediately pay back $84 million of the money and put a further $112 million under review.

In one shocking example, the owner and two employees of Queens-based Purple Heart Transportation were indicted by the state Attorney General for allegedly stealing $19 million, in a scheme that involved paying weekly cash kickbacks to patients who lent their IDs to use for Medicaid billing.

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Despite the alarming audit, which included 322 transportation providers in New York City, Gov. Kathy Hochul rewarded the company in control of doling out the funds, Medical Answering Services (MAS), by expanding its approximately $1 billion contract in 2023.

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The problems have since continued, The Post can reveal. In the last year, the New York Attorney General’s Medicaid Fraud Control Unit has reached agreements to reclaim $13 million allegedly stolen by NEMT contractors.

According to the settlement from the AG’s office, one Bronx-based company called American Base No. 1 will repay $4.75 million to resolve allegations it grossly inflated milage, among other alleged scams, including one driver who claimed 96 unique trips amounting to driving 2,158 miles in just a single day.

Another Bronx company, NBT Transportation, will pay back $1.5 million to resolve allegations it submitted claims for fake toll expenses from Medicaid, according to the AG.

Seaman Radio Dispatchers of Manhattan was sued for $1.2 million for allegedly collecting Medicaid transportation payments for dead people while the company’s taxi license was suspended. The defendants have denied civil charges against them, and the case is ongoing, court records show.

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