Fraud is still very prevalent in the home care industry and while many fraudulent activities are flagged down by proper authorities there are still millions of dollars being stolen from either state funded organizations or directly from the pockets of customers.
“Empire State Home Care Services, a New York-based home care agency, has agreed to a $6 million settlement following a Medicaid billing audit. The audit revealed Empire improperly billed Medicaid by reporting salaries and benefits of administrative personnel under direct care cost centers between 2002 and 2005 and received inflated reimbursements, according to Schneirderman’s office. The reporting allegedly resulted in more than $3 million in Medicaid reimbursements Empire was not entitled to between 2004 and 2007.
“Many New Yorkers count on Medicaid for important health services, and I will continue to safeguard Medicaid funds to ensure they are being used for their intended purpose,” Attorney General Schneiderman said in a statement. “When Medicaid reimbursements are inflated by providers, it causes funds to be diverted from those most in need.”
The $6 million settlement resolves these claims and consists of the more than $3 million in undue reimbursements plus penalties that Empire has agreed to pay back over 12 years. The audit also noted that Empire improperly allocated certain home office costs under direct care costs and received inflated Medicaid reimbursements for this reporting.”
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