New York Attorney General Letitia James has taken decisive steps to combat Medicaid fraud in the medical transportation sector. Her office has issued cease and desist notices to 54 transportation companies across the state, warning them against fraudulent billing practices. These actions follow investigations by the Office of the Attorney General (OAG) that have already recovered over $10 million and resulted in criminal convictions for 11 individuals.
"Companies that illegally profit by exploiting Medicaid patients steal taxpayer money and undermine the health care system that all New Yorkers rely on," stated Attorney General James. She emphasized her commitment to ending these schemes, which exploit vulnerable individuals and misappropriate funds intended for healthcare.
Medicaid reimburses businesses for transporting patients to medical appointments. However, some companies have been found guilty of fraudulent activities such as billing for fake trips, inflating mileage costs, using unlicensed drivers, and engaging in kickback schemes with Medicaid recipients.
The OAG's Medicaid Fraud Control Unit (MFCU) is actively investigating these fraudulent practices. In addition to cease and desist notices, Attorney General James announced settlements with four companies totaling over $847,000 due to illegal billing schemes.
City Service Transportation, Inc., AJ Medical Transportation Co., Safe Ride of WNY, Inc., and Half Moon Medical Transportation, Inc. are among those required to repay significant amounts to the state following these settlements.
Attorney General James expressed gratitude towards various agencies including the United States Department of Health and Human Services – Office of the Inspector General for their cooperation in these investigations.
The MFCU's efforts have led to numerous convictions across New York State. Significant cases include a December 2024 conviction involving five taxi company owners who stole over $4.4 million through fraudulent means. The unit continues its mission under leaders such as Director Amy Held and Chief Deputy Attorney General José Maldonado.
The public is encouraged to report any suspected Medicaid provider fraud or abuse through confidential channels provided by MFCU. Funding for MFCU’s operations comes largely from federal grants supplemented by state contributions.
For assistance with obtaining Medicaid transportation services, New Yorkers can contact designated numbers depending on their region.