Full Breakdown
New York's Medicaid Transportation Program Faces Allegations of Widespread Fraud
2/11/2026, 1:54:15 AM
Overview of Allegations Against the NEMT Program
New York's Non-Emergency Medical Transportation (NEMT) program is under scrutiny for allegedly facilitating up to $196 million in fraudulent claims. A federal audit by the Department of Health and Human Services (HHS) revealed significant mismanagement, with nearly half of the $445 million disbursed in 2018 and 2019 deemed questionable. Issues included undocumented rides, unlicensed drivers, and services billed without proper authorization.
Key Figures and Entities Involved
The NEMT program is managed by Medical Answering Services (MAS), led by Russ Maxwell, who has been linked to substantial political donations to Governor Kathy Hochul and former Governor Andrew Cuomo, totaling over $300,000. Despite the audit's findings, Hochul renewed MAS's contract, which is valued at approximately $1 billion, just months after a fundraiser hosted by Maxwell.
Fraudulent Activities and Legal Actions
The New York Attorney General's Medicaid Fraud Control Unit has initiated legal actions against several contractors involved in the NEMT program. Notably, the Queens-based Purple Heart Transportation was indicted for allegedly stealing $19 million through kickback schemes involving patients. Other companies, such as American Base No. 1 and NBT Transportation, have faced settlements for inflating mileage claims and submitting fraudulent expenses. In total, the AG's office has recovered $13 million from various contractors since the audit.
Criticism and Calls for Reform
Critics, including Republican State Senator George Borrello, argue that the NEMT program has become a "billion-dollar boondoggle" that lacks accountability. Borrello has called for a return to county-level management, which he claims was more effective and cost-efficient. The state has been accused of being unresponsive to bipartisan calls for an independent audit of its Medicaid spending, which has ballooned from $50 billion in 2011 to $115 billion today.
Official Responses and Ongoing Investigations
The New York State Department of Health has not provided detailed responses regarding the audit or the implementation of reforms. The state disputes the HHS report, claiming that most of the flagged rides met requirements and attributing discrepancies to growing pains as MAS expanded its operations. Meanwhile, the AG's office continues to investigate and address fraudulent activities within the program.
Conclusion: The Future of New York's Medicaid Transportation
As New York grapples with allegations of fraud within its NEMT program, the lack of transparency surrounding Medicaid spending raises concerns among taxpayers and lawmakers. With ongoing investigations and legal actions, the future of the program remains uncertain, highlighting the need for potential reforms and greater oversight.
