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NYC to pay $70 million in Medicaid settlement

November 1, 2011

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NEW YORK—New York City has agreed to pay $70 million to settle a federal lawsuit that accused it of overbilling Medicaid for millions of dollars in reimbursements for personal care services.

The city acknowledged it had re-authorized the services for certain patients without obtaining the required assessment from a physician, nurse or social worker. It also admitted it didn't get a medical review in some cases.

City corporation counsel Michael Cardozo says the city had acted in the belief the services provided were appropriate. He said the settlement covered a small percentage of the PCS expenditures over the past decade and was based on technical recording-keeping deficiencies.

U.S. Attorney Preet Bharara says the judge who denied the city's motion to dismiss the case had specifically rejected the argument the case was about "paperwork."

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