The state and city of New York have agreed to pay a record $540 million to settle allegations they helped overbill the federal government for Medicaid services.
N.Y., state paying record Medicaid settlement
The Justice Department says it had investigated claims for reimbursement for services provided to New York schoolchildren from 1990 to 2001.
New York State will pay most of the money, some $440 million. New York City will pay $100 million.
Federal investigators allege that New York did not provide proper guidance to local governments on Medicaid rules, in order to make the U.S. pay a larger share of Medicaid costs.
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