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Medicaid Mishandling to Cost NYC $70 Million

MANHATTAN (CN) - New York City will pay the U.S. government $70 million to settle claims that it failed to conduct necessary assessments before authorizing personal care services for Medicaid beneficiaries.

U.S. District Judge Jed Rakoff approved the settlement on Monday, closing the book on a January 2011 lawsuit.

Improper administration of the Medicaid personal care services program in New York City between 2000 and 2010 has cost the government tens of millions of dollars in reimbursements, according to the complaint.

The government claimed that program administrators in the city often failed to obtain required assessments or reviews by medical professionals before authorizing or reauthorizing 24-hour personal care services for Medicaid beneficiaries.

As part of the settlement, New York City acknowledged its noncompliance with federal Medicaid requirements and announced that it has adopted new policies to meet government standards.

Dr. Gabriel Feldman initiated the whistle-blower action under the False Claims Act and will share in the proceeds of the settlement.

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