NY recovers $335M from Medicaid fraud, abuse

Jan 23, 2013

ALBANY, N.Y. (AP) — New York Attorney General Eric Schneiderman says his office recovered more than $335 million last year from Medicaid fraud and abuse. 

The total, including $146 million from a multi-state settlement with pharmaceutical giant GlaxoSmithKline, is the second highest annual recovery by the Medicaid Fraud Control Unit.

Schneiderman says he added prosecutors, investigators and auditors to boost the fraud unit.

Other cases of improperly claimed payments from the government health program for the poor include shutting down a scheme to distribute black market prescription HIV drugs through a Long Island-based pharmacy and bill the program over $155 million.

Budget documents show New York spent nearly $54 billion for Medicaid in the 2012-2013 fiscal year.

The 2012 settlements exceed the attorney general's entire $220 million budget for this year.

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