Joseph Hernandez, Republican candidate for New York State comptroller, responded to recently reported Medicaid fraud schemes that have cost New York taxpayers hundreds of millions of dollars and have exploited some of the state’s most vulnerable residents.

A recent report from the Department of Health and Human Services revealed that New York’s Non-Emergency Medical Transportation (NEMT) program was plagued by fraud, up to $196 million in improper claims. This includes undocumented trips, unlicensed drivers and false billing paid out under the program. 

In addition, federal authorities also announced charges in a $120 million kickback and prescription fraud scheme involving social adult day care centers in Queens. These operators allegedly bribed and threatened seniors to generate fraudulent Medicaid claims. 

“Pervasive Medicaid fraud is becoming the norm and it’s a symptom of a broken oversight system that New Yorkers cannot afford and shouldn’t be required to fund,” said Hernandez. “Medicaid is meant to protect the most vulnerable, not subsidize fraudsters. When taxpayers’ dollars are stolen, it’s real harm to our retirement security, health care access and community services.”

One company in particular, Medical Answering Services (MAS), which is responsible for distributing Medicaid funds, had its $1 billion contract expanded in 2023 by Gov. Kathy Hochul. 

“Despite the state admitting that some of the improper spending may be due to errors by MAS, Gov. Hochul continues to allow taxpayer money to be siphoned away with little accountability,” said Hernandez.

Hernandez highlighted that billions of dollars in federal and state Medicaid funds are spent without the kind of independent audit, real-time fraud prevention and fiscal accountability that New York desperately needs. This direct failure is caused by a lack of strong oversight by Tom DiNapoli, state comptroller.

“Drivers billing for trips that never happened, day care centers that turned into racketeering schemes, and seniors coerced into fraud are in our headlines and Tom DiNapoli is doing nothing about it. New Yorkers deserve better,” said Hernandez. “I am running for state comptroller to stop fraud before the money walks out the door, and I will not just conduct audits years after the damage is done.”

“New York’s Medicaid budget is one of the largest in the country, and without true oversight, it becomes an easy target for scammers,” Hernandez added. “As state comptroller, I will fight to reclaim every dollar stolen from hardworking taxpayers and ensure public programs serve those they were created to help.”

To learn more about Joseph Hernandez’s plan to modernize the Office of State Comptroller and protect taxpayers, visit:

www.hernandezforny.com
New York City, NY