Several Bronx transportation companies were among 25 throughout the state accused of defrauding Medicaid in a sweeping investigation by Attorney General Letitia James’ office.
The companies provide patient transportation to Medicaid-covered medical appointments and bill Medicaid for a base rate each trip, plus mileage and tolls. In these instances, businesses were accused of vastly inflating trip mileage and, in some instances, billing for trips that never occurred.
As a result of the investigation, 16 companies throughout New York state will pay back a total of $13 million — a sizeable amount for the taxpayer-funded program that received $70 million in state and federal funding in fiscal year 2025.
“When companies make up fake bills and exploit patients to overcharge Medicaid, they take resources away from a program that allows the most vulnerable New Yorkers to get health care,” said James in a June 30 announcement. “From Buffalo to the Bronx, we’re holding scammers accountable and returning millions of dollars in stolen funds to Medicaid, a taxpayer-funded program.”
The Bronx-based company American Base No. 1 will pay the largest amount of those accused — more than $4.78 million — to settle allegations that drivers “grossly inflated” their trip mileage. For instance, one driver billed Medicaid for 96 trips on a single day, totaling over 2,000 miles.
The investigation also found that some American Base No. 1 drivers paid kickbacks to patients for requesting rides with the company, and some used patients’ names to bill Medicaid for rides they never took.
In addition to the settlement, the owner of American Base No. 1, Jose Ortiz of the Bronx, pleaded guilty to a misdemeanor charge of Offering a False Instrument for Filing in the Second Degree.
Four other Bronx-based companies paid lesser penalties.
Agape Luxury Corp. paid $2.45 million for allegedly inflating trip mileage, and NBT Transportation paid $1.5 million for allegedly billing fake tolls. Two others, Equaltrans and Interstate Luxury Limousines, settled for a combined $367,281 for alleged discrepancies in claims submitted to Medicaid.
Reach Emily Swanson at eswanson@schnepsmedia.com or (646) 717-0015. For more coverage, follow us on Twitter, Facebook and Instagram @bronxtimes
