Measures to stop medical transportation fraud

CAPITAL REGION, N.Y. (NEWS10) -"Transportation companies are billing Medicaid for fake rides and tolls, costing New York taxpayers tens of millions of dollars every year," said Attorney General Letitia James. "Today, we have uncovered 55 additional transportation companies operating throughout the state."

The State’s Medicaid program finances rides for people who can’t get to their medical care. One business that was sent a cease and desist for fraud is Shred 518 Medical Taxi Transportation.

NEWS10’s Anthony Krolikowsk spoke with Thomas Rodgers who drove its medical taxis for about a year. He says he got an alarming call Tuesday morning from a co-worker.

“Stating that the Attorney General’s came to the office and closed the business down. We couldn’t pick up any more rides as of 9 o’clock.”

A recording played when calling the company number that said the business is temporarily closed. The cease and desist was not to close the business but to stop fraud.

There’s now close to a dozen drivers just like Thomas in limbo. NEWS10 saw Shred 518 taxis parked in a lot with other vehicles in Mechanicville. Someone was removing license plates from those taxis. NEWS10 also went to the business office address and another location listed on employee paystubs. No one was there.

“We just want answers, y’know? It’s just after Christmas, everybody’s money’s tight and here we are now. No job," said Rodgers. The Attorney General’s Office adds that if more than 50 medical transportation businesses sent cease and desists were to close for good, the state would still have a sufficient number of providers.