Issa demands NY return Medicaid payments

The chairman of the House Oversight Committee is demanding the federal government recoup $61 million in fraudulent Medicaid payments made to the state of New York.

A Health and Human Services (HHS) report Tuesday concludes New York was wrongfully reimbursed for room-and-board costs at state-run facilities by the Centers for Medicaid and Medicare Services between 2009 and 2011.

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“The report issued today is only the latest example of the systemic waste and abuse of federal taxpayer dollars that has become a hallmark of the New York State Medicaid program,” said Rep. Darrell Issa (R-Calif.). “As this report shows, New York State’s current leadership has not effectively addressed the long-standing problems in its program.”

The HHS Office of Investigator General's report says that the New York Department of Health falsely received reimbursements for state-operated rehabilitation residences.

“Specifically, certain unallowable room-and-board costs, such as repairs, maintenance, utilities, and property-related costs, were included in the indirect costs used to calculate the residential habilitation services payment rates,” the report says.

The claims follow another report released by Issa’s committee in March that says New York has falsely claimed $15 billion in Medicaid funds from the federal government between 1991 and 2011.