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NYC to pay $70 million in Medicaid settlement

November 1, 2011

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NEW YORK—New York City has agreed to pay $70 million to settle a federal lawsuit that accused it of overbilling Medicaid for millions of dollars in reimbursements for personal care services.

The city acknowledged it had re-authorized the services for certain patients without obtaining the required assessment from a physician, nurse or social worker. It also admitted it didn't get a medical review in some cases.

City corporation counsel Michael Cardozo says the city had acted in the belief the services provided were appropriate. He said the settlement covered a small percentage of the PCS expenditures over the past decade and was based on technical recording-keeping deficiencies.

U.S. Attorney Preet Bharara says the judge who denied the city's motion to dismiss the case had specifically rejected the argument the case was about "paperwork." top stories on Twitter

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