Assemblyman Joe Borelli (R,C,I – South Shore) issued a letter today to New York State Health Department Commissioner Dr. Nirav Shah regarding the incredible loss of Medicaid dollars to waste, fraud and abuse. In the letter, Borelli implores Shah for new methods to stop this egregious waste of taxpayer dollars.
“During this week’s budget hearing, Dr. Shah presented some beneficial programs for this upcoming fiscal year from the Department of Health,” said Borelli. “However, I was appalled to hear his estimation that up to 45 percent of our state’s Medicaid dollars are lost to waste, fraud and abuse.”
A report issued by the U.S. House Committee on Government Reform and Oversight estimated that waste, fraud and abuse could amount from 30 to 40 percent of New York State’s Medicaid spending. Borelli’s letter notes the fact that this report referred to New York as “the poster child” for fraud in the system.
“It concerns me greatly the waste in the Medicaid system has reached nearly 50 percent,” said Borelli. “If any agency in this state, or any other state, stood to lose almost $11 billion in one year it should be the agency’s number one priority to patch the holes.”
In his letter to Commissioner Shah, Borelli said, “I am aware that your agency has identified $1.1 billion in Medicaid savings in this year’s budget proposal, which amounts to a little more than a tenth of the total wasted.” Borelli asked, “How has your agency tried to combat the apparently still growing abuse issue? Are there additional powers the Legislature should give to the Office of the Medicaid Inspector General? The federal government says New York compares unfavorably against every other state. Are we looking to see what we can learn from elsewhere to reduce waste, fraud, and abuse?”
“The problems are dire and immediate, and we must take action to address the exacerbation of these issues,” said Borelli.