As New York City Defends Medicaid Approvals, Fear of Suit’s Fallout Grows

January 13, 2011  |  

(New York Times) — Medicaid fraud conjures up images of shady doctors, pharmacists and businessmen being led away in handcuffs by federal agents as photographers snap away and television cameras roll.  But this week, Medicaid fraud investigators struck out in a new direction as federal prosecutorsbrought a civil fraud lawsuit accusing the New York City government of using the bureaucracy to run its own Medicaid mill. And in the minds of several advocates for aged and disabled people, the lawsuit raised new questions about health policy, just as the government is expanding health care.

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