Officials on Long Island are advocating for new legislation that would compel the state to share Medicaid fraud tips with local governments and prosecutors, enabling them to conduct their own investigations.
Suffolk County Executive Ed Romaine, District Attorney Ray Tierney, and state Sen. Dean Murray introduced the proposed bill on Thursday. A companion piece of legislation would establish a cash reward system for whistleblowers who assist in the conviction of Medicaid fraudsters.
"We need to crack down on those who are cheating and stealing from the system and we need to fund all local efforts, and saying if you help recover money from a fraudster, you’re entitled to keep some of that money, so that we send a very clear message," Romaine stated at a news conference. He added, "You want to cheat the public? You want to steal from the poor? You want to enrich yourself? We’re coming for you."
Romaine and other officials pointed to New York's Medicaid program, which they described as spending more per resident than any other state while simultaneously ranking last nationally in fraud convictions. They contend this indicates a significant lack of oversight as Medicaid costs continue to rise.
"When you steal money from this program, you steal it from the very people that would benefit from this program — that’s why the cost in New York is twice the cost of Texas and California combined," Romaine said.
The core of the issue, according to the officials, is that Medicaid fraud tips submitted to the state are not being shared with local authorities. This leaves potential investigations to the New York Attorney General's office, led by Letitia James. They argue that her office is focused on larger cases, allowing smaller instances of fraud to go unaddressed.
During James's tenure, her office's Medicaid Fraud Control Unit has recovered over $627 million, primarily from a few large-scale seizures. However, the unit's funding was previously suspended by President Trump due to its low ranking in criminal prosecutions.
Senator Murray acknowledged that the proposed legislation is not intended as an attack on the Attorney General's office. "The facts are we’re not doing enough — our system is inundated with waste fraud and abuse — and we’re leaving money in the pockets of fraudsters and criminals because we’re not doing the job properly," Murray said.
Murray plans to formally introduce the bills in Albany soon, with Assemblyman Joe DeStefano expected to co-sponsor them in the Assembly. It remains uncertain how much support the measures will garner in the state legislature, which is controlled by Democrats.
The Attorney General's office did not immediately respond to a request for comment on the proposed legislation.