Ortt, State Senate GOP want audit of state programs including potential Medicaid fraud, ‘sham daycares’

Press Release, State Senate Republican Leader Robert Ortt

ALBANY – Following disturbing reports of widespread fraud involving taxpayer dollars in Minnesota, members of the Senate Republican Conference have penned a letter to the Governor’s Office urging her to immediately hire a private professional services firm to conduct a truly independent audit of programs administered by state agencies to ensure that public funds are only being distributed to authorized organizations and individuals, and utilized for authorized activities.

Further, Senate Republican Leader Ortt will be introducing a bill to require an independent audit of New York State government programs by a professional third party and to mandate that all findings of fraud or abuse will be promptly referred to appropriate law enforcement authorities.

These actions follow recent revelations of rampant fraud and abuse of taxpayer dollars uncovered by investigative reporting in Minnesota, including schemes that reportedly involved sham daycare centers.

“If Governor Hochul isn’t alarmed by what’s happening in Minnesota, New Yorkers will lose even more trust in how their hard-earned tax dollars are being spent,” said Senate Republican Leader Rob Ortt. “The Governor must do her job and guarantee this isn’t happening here. If nothing is amiss, there is no excuse for refusing a comprehensive, independent audit. Failing to act would be an extreme disservice to taxpayers.”

An independent audit is necessary to root out all similar schemes currently underway here in New York, Ortt said. For example:

• $68 million in Medicaid fraud committed by a Brooklyn adult daycare operator uncovered by the Department of Justice in August.
• The State improperly paid over $2.6 billion in Medicaid premiums for people who do not live in New York.
• $13 million in Medicaid fraud for transporting patients to medical appointments.
• $7 million in Medicaid fraud for fraudulent billing.

“This issue is especially urgent given that dozens of counties across New York have already exhausted their allotted state funding for the Child Care Assistance Program,” the Republican senators state in the letter. “At a time when resources are strained, it is essential that available funds are protected and directed exclusively to those who truly need assistance. Moreover, with reports that your administration may advance a proposal for universal pre-kindergarten in the upcoming legislative session, ensuring these programs are efficient, transparent, and free from fraud should be a shared priority for all New Yorkers.”