New York State's Medicaid Program is one of the most expensive in the nation, with expenditures exceeding $44 billion in 2005. Medicaid continues to be the fastest growing part of the state budget with a projected $550 million increase in this year alone. Studies suggest that fraud could consume up to 10 percent of certain segments of New York State's Medicaid budget.

Senate Deputy Majority Leader Dean G. Skelos (R-Rockville Centre); Senator Kemp Hannon, chairman, New York State Health Committee (R-Garden City), and Senator Raymond Meier (R-Western), chairman, NYS Senate Committee Social Services, co-sponsored a public hearing at Hofstra University's Leo Guthart Cultural Center Theater in the Axxin Library. During this hearing, current state and federal laws, regulations and practices relating to Medicaid fraud detection were examined and discussed.

"This is a public program supported by hardworking taxpayers to provide health insurance to deserving needy, children, elderly, blind and disabled," Senator Hannon said. "Any fraud or misuse of these public monies takes advantage of the needy and devalues the enormous contributions made by all New Yorkers," he continued. "Restoring accountability to the Medicaid system has been a guiding principal ever since the Medicaid Reform Task Force issued its initial report. The system can be improved, and addressing this issue is one of the Senate's highest priorities."

"Medicaid fraud is stealing billions of dollars from New York State's overburdened taxpayers," Senator Skelos added. "During the next few weeks, the Senate plans to unveil the nation's most comprehensive approach to fight pervasive fraud, waste and abuse within our Medicaid system. Through this effort, we will make the program more accountable, ensure that health care is available to those in need and provide real tax relief for hardworking New Yorkers."

"Senate hearings such as this one enable us to closely examine existing state and federal laws, as well as the state's Medicaid fraud detection process to determine how we can improve it to protect tax dollars and achieve greater accountability in the Medicaid program," Senator Hannon said.

During the 2005 legislative session, the Senate introduced and passed legislation (S.3685-B) authored by Senator Skelos to establish an independent Office of Medicaid Inspector General. On Aug. 5, 2005, Governor George Pataki signed an executive order to establish such an office. The purpose of the Office of Medicaid Inspector General is to integrate, consolidate and coordinate the investigation of Medicaid fraud related activities of state and local governments within the state, and where necessary, to coordinate or contribute to the prosecution of fraud.

In addition, Senator Skelos and Congressman John Sweeney (R Saratoga County) requested a federal audit of the Medicaid fraud prevention programs contained within the New York State Department of Health and the Attorney General's office. These federal audits are scheduled for release later this month.

Oral testimony was given by Brian Flood, inspector general, Texas Health and Human Services Commission; Mary Kay Owens, president/consultant pharmacist, Southeaster Consultants, Inc.; Henry Zwack, general counsel, New York State Office for Alcoholism and Substance Abuse Services; Gary Miles, former district attorney, St. Lawrence County, NY; C. Scott Vanderhoef, county executive, Rockland County, NY; and Richard Urra; litigation counsel, WellCare Health Plans, Inc.

This hearing is just one in a continuing series of public hearings being held throughout the state on the problem of Medicaid fraud.