Medicaid is a Federal Program that disburses money annually. In New York, the federal government pays New York State, New York State pays its counties, and the counties pay the service providers. Fraud is investigated at each level, and under the current system, whoever finds the fraud keeps the money. The current system leads to redundant resources, unshared information, and competing interests, all of which are ineffective and costly. David proposes Medicaid fraud reform, which would save us approximately $200 million, as well as creating a more efficient distribution system.
New York is one of a few states that disburses Medicaid funds through its counties. This system has caused New York to lose control of spending. David's reforms would include disbursing Medicaid funds from the State level, eliminating the need for counties to pay and wait for reimbursement. David would seek to authorize referral of all fraud cases to local district attorneys, reducing the timeframe for prosecuting cases. He would then let counties keep a percentage of recovered funds. David would seek to give counties access to a State Medicaid data warehouse to improve local efforts to uncover billing patterns that point to possible fraud or over-utilization of services. Lastly, he would create an automated system to alert county officials when residents become incarcerated or otherwise ineligible for Medicaid benefits. David will cut out fraud across all levels and departments and streamline processes to make government as efficient as possible.