New York City will pay $1.375 million to settle a federal whistleblower action asserting that the city’s Education Department submitted false Medicaid claims for special education students.
The settlement, announced Monday, relates to an arrangement in which Medicaid paid the city’s Department of Education $233 per student for twice-monthly counseling sessions. But the federal government said that from 2001 to 2004, the education department knowingly billed Medicaid for counseling services while offering less than two sessions a month.
