By Forum Staff
State Attorney General Tish James on Monday announced a takedown of 25 transportation companies throughout the state—including one based in Forest Hills—for schemes to steal millions of dollars from Medicaid.
In January, James announced new investigations into transportation companies that are reimbursed by Medicaid for taking patients to and from health care appointments. As a result of these Office of the Attorney General probes, 16 transportation companies will pay back more than $13 million.
Monday’s statewide takedown included companies located in New York City, the Capital Region, Western New York, Westchester County, Central New York, and on Long Island. Among the 16 is JD Xpress, Inc. The owners of JDX paid $331,000 to resolve allegations that the company submitted claims to Medicaid for fake toll expenses and transportation services provided by unlicensed, under-licensed or suspended drivers. The company’s headquarters is Forest Hills Towers on Queens Boulevard.
In addition, OAG has filed new lawsuits against seven transportation companies for defrauding Medicaid and secured the convictions of two individuals and their companies for their roles in medical transportation fraud schemes.
Medicaid reimburses authorized businesses for transporting Medicaid patients to and from covered medical services. A licensed taxi company enrolls with the state as an eligible provider and is then randomly assigned to provide trips to patients to specific, non-emergency, medical appointments. The companies must use licensed drivers, proper vehicles, and bill only for services actually rendered. They are allowed to bill Medicaid for a base rate for the trip, plus an amount for mileage and any tolls.
The OAG’s Medicaid Fraud Control Unit has investigated transportation companies across the state for using fake billing and other fraudulent tactics to steal Medicaid funds. The companies’ schemes often involve billing Medicaid for fake trips, adding fake tolls to inflate costs, fraudulently extending the mileage of trips, and using unlicensed drivers. In some cases, companies exploit vulnerable Medicaid recipients by paying them kickbacks in exchange for requesting transportation services from the company. These kickback schemes can put already vulnerable New Yorkers at even greater risk. MFCU investigators have uncovered cases in which transportation companies exploited Medicaid recipients in need of substance abuse treatment to recruit passengers to use in fake billing schemes.
New York MFCU’s total funding for federal fiscal year 2025 is $70,502,916. Of that total, 75 percent, or $52,877,188, is awarded under a grant from the U.S. Department of Health and Human Services. The remaining 25 percent, totaling $17,625,728 for FY 2025, is funded by New York State.
“When companies make up fake bills and exploit patients to overcharge Medicaid, they take resources away from a program that allows the most vulnerable New Yorkers to get health care,” said James. “My office launched a sweeping investigation of the medical transportation industry to root out fraud, and we are getting results.”
If an individual believes they have information about Medicaid provider fraud or about an incident of abuse or neglect of a nursing home resident, they can file a confidential complaint online or call the MFCU hotline at (800) 771-7755.
