State Lawmakers to Propose Legislation to Reduce Medicaid Fraud

Senator Golden, Assemblywoman Malliotakis Seek Return of Personal Interview as part of Medicaid Application

Albany – State Senator Martin J. Golden (R-C-I, 22nd District) and Assemblywoman Nicole Malliotakis (R-C, 60th District) today are announcing plans to introduce legislation to enhance cost savings and reduce Medicaid fraud by reinstating the use of a resource asset test for Medicaid eligibility. Additionally, the legislation will include a provision that will reinstate the initial personal interview upon the filing of an application for Medicaid.

Senator Marty Golden, a member of the Senate Health Committee stated, “The 2009 New York State Budget included language that repealed the resource asset test for Medicaid eligibility which was instrumental in preventing people from hiding their resources. Since we have eliminated this step in the screening process, we have heard of more people who have been able to get free health insurance for their families, while living in million dollar homes and driving luxury automobiles.”

Golden continued, “In this economic climate of budget cuts, New York has no room to waste not even a single dollar. The United States Government Accountability office estimated that in 2010, Medicaid Fraud in New York State cost taxpayers $5 billion. There is no doubt that this was simply a poor policy making decision that needs to be corrected immediately. This legislation will again require screenings as part of the Medicaid eligibility review, so that the system can provide the benefits only for those most in need.”

Assemblywoman Nicole Malliotakis stated “Fraud and abuse are some of the largest contributing factors to our bloated and inefficient Medicaid system that costs 24 percent more than California’s program, despite New York containing 17 million less residents. As costs continue to skyrocket, we simply cannot afford to allow billions of dollars disappear as a result of waste and fraud within the Medicaid system.”

Malliotakis continued, “The Resource Asset Test is a proven, effective tool to combat these problems, and I urge my colleagues in the Legislature to adopt this measure immediately so that not one more cent is waste.”

The legislators will be introducing the bill in the State Senate and State Assembly respectively later this month.