New York Attorney General Eric Schneiderman announced on July 6 that his office had reached a $400,000 settlement with 4J's Transportation, Inc for filed false Medicaid services. | New York Attorney General

A New York transportation company will pay $400,000 to settle a lawsuit with the state over allegations it filed false Medicaid claims, said New York Attorney General Eric Schneiderman on July 6.

4J's Transportation and it's owner will repay $316,991 to Medicaid and $84,972 in interest. Schneiderman said the company's Medicaid filings couldn't be supported with documentation.

“Providers must be able to properly document services for which they received payment from Medicaid,” Schneiderman said. “Doing otherwise drains Medicaid of precious resources, and my office will steadfastly guard New York taxpayer dollars expended to ensure quality care to those most in need.”

An investigation by the Attorney General's Medicaid Fraud Control Unit showed Four J's couldn't provide documentation to support Medicaid billings between January 2005 and August 2011. Schneiderman said the company couldn't provide any records that the services it billed Medicaid for were even provided to patients.

Medicaid requires all health care providers to keep and maintain records that document the nature and extent of all services provided to patients. The reason is to help deter potential fraud for when health care providers submit a bill to Medicaid, Schneiderman said.

Special Assistant Attorney General Anne Jardine, the regional director of the Peral Regional Office in the Medicaid Fraud Control Unit, represented the state in the case.

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