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Feds rip N.Y.’s Medicaid program after 15 nonprofit execs got $500,000 salaries

Posted By Joseph Spector On February 15, 2013 @ 9:13 am In Other | Comments Disabled

Fifteen executives at various New York nonprofits primarily financed by Medicaid money each were paid more than $500,000 a year, according to a report a House committee approved Thursday, Gannett Washington’s Brian Tumulty reports.

The report, titled “Billions of Federal Tax Dollars Misspent on New York’s Medicaid Program,” also found that another 100 executives earned “excessive salaries” — more than $200,000 each — at New York nonprofits operating primarily to provide Medicaid health services to the poor. [1]

The report is the result of the House Committee on Oversight and Government Reform investigation into Medicaid spending. The report references the two-year investigative series by the Poughkeepsie Journal called “Money Pit/Money Maker,” which revealed widespread fraud and abuse of the Medicaid system.

Among the abuses in the report is an estimated $15 billion the state overbilled the federal government for Medicaid services to developmentally disabled people housed in large institutional settings. Many of the billing practices were documented in the Poughkeepsie Journal series.

Here’s the report, which notes: “Two state Senate majority leaders have been convicted of fraud or corruption charges related to health care.”

Gov. Andrew Cuomo recently issued an executive order capping executive salaries at $199,000 for most contractors doing business with more than a dozen state agencies beginning April 1. Cuomo’s cap on executive compensation should be codified by the state Legislature, the congressional report suggests.

Bk 200893214 [2] by jspector [3]


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URL to article: http://statepolitics.lohudblogs.com/2013/02/15/feds-rip-n-y-s-medicaid-program-after-15-nonprofit-execs-got-500000-salaries/

URLs in this post:

[1] at New York nonprofits operating primarily to provide Medicaid health services to the poor.: http://www.poughkeepsiejournal.com/article/20130215/NEWS/302150042

[2] Bk 200893214: http://www.scribd.com/doc/125631382/Bk-200893214

[3] jspector: http://www.scribd.com/jspector