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Policy: Entitlements

New York City to pay $1m to settle Medicaid probe

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Associated Press,Watchdog,New York,New York City,Health Care,Medicare and Medicaid,Entitlements,Follow the Money

ALBANY, N.Y. — Federal authorities say New York City has agreed to pay $1.05 million to settle allegations that the city's Human Resources Administration failed to stop Medicaid payments for health care coverage for beneficiaries who became ineligible.

More than 5 million low-income New Yorkers are enrolled in Medicaid, which is funded half by the state and half by the federal government.

Several insurers have contracts to cover city beneficiaries for fixed monthly payments.

Investigators say insurers on several occasions notified HRA when beneficiaries may have moved away, but HRA failed to follow up to ensure the monthly payments stopped.

According to the U.S. attorney's office in Albany, the investigation was prompted by a whistleblower, who will receive $175,000 from the settlement.

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