New York Attorney General Letitia James said she is taking new measures to halt Medicaid fraud by medical transportation companies using fake billing schemes.
The attorney general's office issued cease-and-desist letters to 54 transportation companies throughout the state, warning them of potential financial penalties and prison sentences if they continue the alleged schemes, according to a Jan. 8 news release.
Companies' alleged schemes often involve billing Medicaid for fake trips, adding fictitious tolls to inflate costs, fraudulently extending the mileage of trips, and using unlicensed drivers, according to the release. In some cases, companies allegedly exploit Medicaid patients by paying them kickbacks in exchange for requesting transportation services.
In addition to the letters, 15 of the companies also received demands for repayment of fraudulently obtained funds, according to the release.
The office's investigations into the medical transportation industry have secured over $10 million and led to the criminal convictions of 11 people, according to the release.