Federal suit claims NYC overbilled Medicaid

The New York Times, January 12, 2011
The federal government has accused New York City of overbilling Medicaid by "at least tens of millions of dollars" by improperly approving 24-hour home care for thousands of patients. In a lawsuit filed Tuesday, the United States attorney's office in Manhattan also insinuated that the city had cheated the federal government after a 2006 change in Medicaid rules relieved the city of having to contribute to the cost of the round-the-clock care. In many cases, the government said, the city enrolled patients who did not need such services. And in some cases, the lawsuit alleged, the city approved in-home care for people who needed more intensive services, like nursing home care, but which would have required the city to contribute to the cost.

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