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Post date: January 5 2015

A.G. Schneiderman Announces $300k Settlement With Queens-Based Transportation Provider

Settlement Resolves Allegations That Apple Transportation Of New York, Inc. Overbilled Medicaid

NEW YORK – Attorney General Eric T. Schneiderman today announced that Apple Transportation of New York, Inc., a Queens-based transportation company, will pay $300,000 to settle claims that it overbilled Medicaid for transportation services.

"Those who bill Medicaid for services they did not provide are picking the pockets of taxpayers and depriving other New Yorkers of needed assistance," said Attorney General Schneiderman. "There has to be one set of rules for everyone, and my office will not allow Medicaid providers to siphon funds from the program by overbilling." 

Medicaid recipients in New York can receive transportation to medical appointments in cases where recipients have a medical need for transportation services. Medicaid pays for different types of transportation, including livery and ambulette services. Transportation companies can bill for ambulette service when personal assistance, such as physical assistance, is provided to a passenger in connection with a trip. Medicaid pays more for ambulette services than for livery trips in which no personal assistance is provided to the passenger.

As part of a settlement agreement, Apple Transportation of New York, Inc. ("Apple") admitted that between January 1, 2004 and October 30, 2008, it frequently billed Medicaid for ambulette services in connection with certain trips even though no personal assistance was provided to Medicaid recipients. As a result, Apple was paid by Medicaid for ambulette services at rates that were higher than the applicable livery rates. The trips at issue were provided to Medicaid recipients who attended various outpatient mental health programs.

The case was investigated by Medicaid Fraud Control Unit Special Investigator Nancy Calo-Kenney, Auditor Investigator Kashmir Singh and Special Assistant Attorney General Christopher Y. Miller with the assistance of Supervising Investigators Thomas Creelman and Michael Casado and Chief of Downstate Investigations Kenneth Morgan, Regional Chief Auditor Thomasina Smith. The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

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