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NY recovers $335M from Medicaid fraud, abuse

Published on NewsOK Modified: January 23, 2013 at 4:54 pm •  Published: January 23, 2013

Schneiderman credited additional prosecutors, investigators and auditors for boosting the fraud unit.

"That initiative has paid off," he said.

The fraud unit now has 315 staff across the state in Albany, Buffalo, Hauppauge, New York City, Rensselaer, Pearl River, Rochester and Syracuse. That's up 34 from two years ago, with a $46 million budget for the unit this year.

The Medicaid inspector general, an office established in 2006 within the Health Department, this year is spending $55 million to prevent and detect fraud in public assistance for health, mental health, addiction and disabilities programs, according to budget documents. It works with the other agencies, including the attorney general.

Last year's recoveries included $1.6 million of excess Medicaid payments on claims for dental services provided by Kaleida Health through the Buffalo Women's & Children's Hospital Dental Clinic, a $3.1 million settlement with Cayuga Medical Center for billing Medicaid and federal programs for patients referred by physicians who were engaged in a financial relationship with the hospital and the shutdown of a an oxycodone trafficking operation in Staten Island.