NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman and acting U.S. attorney Joon H. Kim announced July 17 that Visiting Nurse Service of New York and its Managed Long-Term Care Plan, VNS Choice, will pay $4,392,150 after allegations of improperly retaining public funds.

“Blatantly retaining and failing to repay Medicaid overpayments undermines the system on which so many vulnerable New Yorkers rely,” Schneiderman said. “The law makes clear that overpayments must be repaid in a timely manner – and we’ll hold providers to the law.”

Between Jan. 1, 2011, and March 31, 2015, the defendants allegedly failed to identify and dis-enroll 365 VNS Choice members in a timely manner. Because of this, VNS Choise received payment for care it never provided. The defendants kept the funds and did not return them to Medicaid. Alleged conduct of this nature violates the federal and state false claim acts. New York will receive $2.63 million of the total settlement amount.

Handling the case for New York were special assistant attorney general Alee N. Scott, chief of the Civil Enforcement Division Carolyn T. Ellis, principal auditor-investigator David Verhey and principal supervising auditor-Investigator Paul Erhardt.

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