New York City has agreed to pay $70 million to settle a lawsuit claiming the city’s personal-care services program overbilled Medicaid for millions of dollars, according to a Wall Street Journal report.
The program is part of Medicaid and is designed to provide cleaning, shopping, grooming and other aid services to Medicaid beneficiaries who meet certain criteria. Treating physicians, a social worker and a nurse are required to assess beneficiaries and determine eligibility.
The Department of Justice filed a complaint alleging that the city did not conduct proper assessments before authorizing personal-care services for applicants. The city allegedly improperly authorized services for a “substantial percentage of the thousands of individuals receiving this 24-hour care,” resulting in damages of at least tens of millions of dollars.
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