Recent Events in the News

NYC Medicaid Fraud Settlement Prompts Unwanted Changes to Service

Posted on Nov 08, 2011

In the wake of a settlement for $70 million meant to combat Medicaid fraud in New York City, advocates of the disabled are now expressing concern that some services may be cut, affecting the care of many in need.

The settlement, filed by the City of New York last Monday, October 31, was paid to alleviate what whistle-blower Dr. Gabriel Feldman considered to be superfluous service, including upwards of $150,000 to sustain people at home instead of providing for cheaper service at nursing homes. This was originally touted as a victory for the disabled, because the wasted money would now be under greater scrutiny, and more funding would be available for non-fraudulent services.

But some are concerned that the city is now cutting back on services that some depend on. In a letter sent this week to the US attorney for Manhattan and the federal Medicaid administrator, advocates like Legal Aid Society and Selfhelp Community Services have pointed to a letter sent from city officials to 100 people that "their services would be discontinued." These services include 24-hour care like bathing and toileting, which are crucial to keeping the individuals at home rather than in nursing homes.

On the other hand, city officials contend that those truly eligible for the services will remain covered. Since the mailing was merely a routine service update, anyone may appeal the decision.

Whether it is routine or not, the fact of the matter is that changes to the care of certain disabled individuals are now in the works in New York City thanks to its recent settlement.

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