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January 22, 2016

Health Charity to Pay $47 Million to Settle Medicaid Case

A New York health-care nonprofit has agreed to pay nearly $47 million to the state and federal governments after admitting to allegations of Medicaid fraud, The Forward reports. CenterLight Healthcare acknowledged enrolling more than 1,200 ineligible seniors in a Medicaid-sponsored long-term care program, for which the nonprofit collected monthly fees of $3,800 per member.

CenterLight will pay $28 million to New York State and $18.7 million to the U.S. government for the fraud, which authorities said involved enrolling clients at adult day care centers in a Medicaid plan intended only for those needing nursing-home care. The charity declined to answer questions from The Forward but said in a written statement, “We are pleased to reach this settlement and look forward to our continued collaboration with the state as we carry out our mission of helping New Yorkers in need.”