Attorney General’s Office Recovers $335 Million in Fraudulent Claims

Attorney General Eric Schneiderman announced that his office recovered over $335 million for New York State in 2012 that had been improperly claimed through fraud or abuse in the Medicaid system.

This was the second highest annual recovery total ever by the attorney general’s Medicaid Fraud Control Unit and the highest recovery in seven years.

Attorney General’s Medicaid Fraud Control Unit shut down schemes to illegally obtain prescription drugs through Medicaid and distribute them on the street for profit. In addition, the Medicaid Fraud Control Unit targeted providers that billed for unnecessary services or unnecessary visits to perform services that could have been rendered in a single visit.

Also providers that referred patients to unlicensed facilities in exchange for kickbacks; unlicensed healthcare workers; and black market drug sellers that diverted prescription medications of unknown origin, re-packaging and re-selling them to pharmacies.