Bills Target Medicaid Fraud With New Tip Program, Rewards

Two pieces of legislation designed to strengthen New York’s fight against Medicaid fraud would establish a statewide reporting system, create financial rewards for whistleblowers and bolster efforts to recover taxpayer dollars from criminals exploiting the program.

The bills, announced Thursday by State Sen. Dean Murray alongside Senators Anthony Palumbo and Mario Mattera, Suffolk County Executive Ed Romaine, District Attorney Ray Tierney and Assemblyman Joseph DeStefano, come after the recent conviction of a Mt. Sinai man who admitted orchestrating a nearly $20 million Medicaid fraud scheme.

The first measure would formally designate the New York State Office of the Medicaid Inspector General as the state’s official clearinghouse for Medicaid fraud complaints through its existing 1-877-87-FRAUD hotline. It would also establish in statute a standardized process for receiving, evaluating and investigating fraud tips.

A second bill would establish a Medicaid Fraud Tip Reward Program, allowing individuals whose documented information directly leads to the successful resolution of a Medicaid fraud case through a guilty plea or criminal conviction to receive a financial reward.

“It is imperative that we give our local prosecutors every opportunity to go after and convict those who engage in Medicaid fraud and steal from the taxpayers, and these bills will help accomplish that,” Murray said.

Romaine said the proposals would strengthen local efforts to identify and prosecute fraud while protecting taxpayer dollars.

“I strongly support Senator Murray’s efforts,” Romaine said. “I hope the rest of the state Legislature and the governor are supportive to allow localities to track down these fraudsters who are taking taxpayers’ money and enriching themselves. It’s time to wipe out corruption.”

DeStefano said the legislation would encourage more people to report fraud while giving local authorities stronger tools to investigate and prosecute offenders.

“This legislation will incentivize members of our community to report suspected fraud, increase the number of investigations into Medicaid theft, and empower our local government to prosecute these cases and return our tax dollars to honest New Yorkers,” DeStefano said.

“Governor Hochul and Attorney General James won’t do anything to uncover the fraud since it would only show how incompetent they have been in managing our Medicaid dollars,” said Senator Mattera. “It’s such a terrible waste of taxpayer money.”

Officials announcing new fraud bills, from left, Suffolk Executive Ed Romaine, Assemblyman Joseph DeStefano, Senators Dean Murray and Anthony Palumbo, District Attorney Ray Tierney, DA Deputy Bureau Chief Michael McCoy, and Senator Mario Mattera. Credit: J.P. DiDonato