New York Jewish health charity agrees to pay $47 million after settling fraud case

The charity acknowledged in a plea agreement that it had defrauded government health care program by placing over 1,000 ineligible members on its long-term care plans.

By JPOST.COM STAFF
Updated: JANUARY 22, 2016 13:43
Hadassah Medical Organization’s woes are far from over. (photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)
Hadassah Medical Organization’s woes are far from over.
(photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)
CenterLight Healthcare, a Jewish health care charity based in New York, has agreed to pay $47 million dollars in compensation to state and federal authorities after admitting to Medicaid fraud, the Forward reported Thursday.
The charity, formally known as Beth Abraham Family of Health Services, acknowledged in a plea agreement that it had defrauded the government health care program by placing over 1,000 ineligible members on its long-term care plans. It has agreed to pay $28 million to New York State and $18.7 million to the federal government, the Forward added.
“It’s simple: CenterLight Health Care did not play by the rules,” said New York Attorney General Eric Schneiderman in a statement. “We won’t tolerate companies that seek to exploit the system for profit.”
After coming to terms on the agreement, CenterLight released a pre-written statement to the Forward stating that they were "pleased to reach this settlement" and were looking forward to "continued collaboration with the state as we carry our mission of helping New Yorkers in need.”
According to statements from the office of Schneiderman, and from US Attorney Preet Bharara, CenterLight enrolled 1,241 people who were found to be ineligible when they enrolled, or became ineligible and were not removed from the Medicaid subsidy.
Since 2013, CenterLight received $3,800 per month, a so-called “capitation payment,” for each person enrolled in its managed care plans through its chain of adult day care centers. The Forward noted that while Medicaid requires participants to be placed in nursing homes, CenterLight structured itself to avoid the stipulation.