AG James secures $7 M+ from home health agencies for Medicaid fraud

New York Attorney General Letitia James announced agreements with two home health agencies for cheating employees out of wages and submitting false Medicaid claims. Under the terms of the agreements, All American Homecare Agency, Inc. (All American) repaid $4 million and Crown of Life Care NY LLC (Crown) will return $1.4 million to the Medicaid program. Crown will also pay more than $1.5 million for distribution to employees that were cheated out of their wages. Both All American and Crown have admitted to their wrongful conduct and have simultaneously entered into settlement agreements with the U.S. Attorney’s Office for the Eastern District of New York (EDNY) to resolve their Medicaid fraud liability.

“Home health aides provide critical care for our most vulnerable, and they must be fairly compensated for their work,” said Attorney General James. “Not only did these companies shamelessly cheat their workers, they also cheated our state and stole from communities that need it most. My office will never tolerate fraud of any kind, and we will continue to do everything we can to ensure that New Yorkers get their fair pay and treatment.”

“It is outrageous to cheat home health aides of their hard-earned benefits guaranteed under New York law and the Medicaid program,” said U.S. Attorney for the Eastern District of New York Breon Peace. “These settlements reflect this office’s firm commitment to preventing fraud in government programs and protecting home health aides — who perform physically and emotionally taxing work in caring for some of the members of our community most in need.” 

The New York Wage Parity Act sets wage and benefit minimums that state-licensed home care services agencies (LHCSAs) are required to pay staff who perform home health aide and personal care services to Medicaid recipients. Under the law, workers are currently entitled to a base wage of $15.00 per hour that agencies must pay, and an additional $4.09 per hour in New York City and $3.22 in Nassau, Suffolk, and Westchester counties. Reimbursement by the Medicaid program for services rendered to Medicaid recipients is conditioned upon compliance with these wage and benefit requirements.

Image courtesy of thesatimes

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