Medicaid Fraud Costs Billions Annually; Ranzenhofer joins Task Force to eliminate fraud, restore accountability


Albany, NY – State Senator Michael H. Ranzenhofer has joined the Senate Medicaid Fraud Task Force today.  The U.S. Government Accountability office estimates New York’s Medicaid Fraud to be near $5 billion in 2010.

“Medicaid fraud costs billions of dollars every year. We must investigate ways to eliminate fraud and recover taxpayer dollars to finally restore accountability to New York’s Medicaid program,” said Senator Ranzenhofer.  “I am eager to begin working with county leaders and district attorneys who are on the front lines of fighting fraud.”

The task force will hold hearings this month across the State and issue recommendations prior to the April 1st budget deadline.  The creation of the task force is in response to the many documented cases and reports of Medicaid fraud.

The State Comptroller uncovered $92 million in Medicaid overpayments and billing errors last year.  After the Department of Health agreed with the report, it only attempted to recover $2.4 million in overpayments.

The New York Post reported nearly 30,000 New York City residents were improperly enrolled in Medicaid.  Additionally, only 207 cases were investigated, even though 13,000 should have been reviewed for violations of Medicaid laws. 

The U.S. Department of Health and Human Services ranked New York 26th nationally for Medicaid fraud recovery, based on fraud dollars recovered per Federal Medicaid dollar spent.  The Government Accountability Office faulted New York for “not having a comprehensive fraud prevention framework to prevent fraud and abuse of controlled substances paid for by Medicaid.”

Senator Ranzenhofer has been serving in the State Senate since 2009.  He represents the 61st District which includes part of the city of Tonawanda, the Towns of Amherst, Clarence, Newstead and Tonawanda in Erie County and all of Genesee County.