For Immediate Release: January 31, 2013 Contact: David Carr, 718-967-5194, 917-715-7902

BORELLI TO HEALTH COMMISSIONER SHAH: WHY ARE NEARLY HALF OUR MEDICAID DOLLARS ABUSED?
Assemblyman Joe Borelli (R,C,I South Shore) issued a letter today to New York State Health Department Commissioner Dr. Nirav Shah regarding the incredible loss of Medicaid dollars to waste, fraud and abuse. In the letter, Borelli implores Shah for new methods to stop this egregious waste of taxpayer dollars. During this weeks budget hearing, Dr. Shah presented some beneficial programs for this upcoming fiscal year from the Department of Health, said Borelli. However, I was appalled to hear his estimation that up to 45 percent of our states Medicaid dollars are lost to waste, fraud and abuse. A report issued by the US House Committee on Government Reform and Oversight estimated that waste, fraud and abuse could amount from 30 to 40 percent of New York States Medicaid spending. Borellis letter notes the fact that this report referred to New York as the poster child for fraud in the system. It concerns me greatly the waste in the Medicaid system has reached nearly 50 percent, said Borelli. If any agency in this state, or any other state, stood to lose almost $11 billion in one year it should be the agencys number one priority to patch the holes. In his letter to Commissioner Shah, Borelli said, I am aware that your agency has identified $1.1 billion in Medicaid savings in this years budget proposal, which amounts to a little more than a tenth of the total wasted. Borelli asked, How has your agency tried to combat the apparently still growing abuse issue? Are there additional powers the Legislature should give to the Office of the Medicaid Inspector General? The federal government says New York compares unfavorably against every other state. Are we looking to see what we can learn from elsewhere to reduce waste, fraud, and abuse? The problems are dire and immediate and we must taken action to address the exacerbation of these issues, said Borelli. (LETTER ATTACHED BELOW)

January 31, 2013 Dr. Nirav R. Shah Commissioner New York Department of Health Corning Tower, Nelson Rockefeller State Plaza Albany, NY 12237 Commissioner Shah, I was pleased to hear in your testimony at this weeks budget hearing about some projects your department is looking to undertake in the coming fiscal year. However, one thing does remain unclear. In response to a question from Assemblywoman Inez Barron you stated that up to 45% of Medicaid dollars spent in this state are lost to waste, fraud, and abuse. This means the states potential loss to these issues in FY 2014 could approach $11 billion. I am sure you are aware of the report issued by the US House Committee on Government Reform and Oversight, which estimated that waste, fraud, and abuse ranged from 30% to 40% of our states Medicaid spending and called New York the poster child for fraud in the system. This study indicates that our state has one of the worst records in the nation, and yet, by your own estimation things appear to be worse even worse than that. I am aware that your agency has identified $1.1 billion in Medicaid savings in this years budget proposal, which amounts to a little more than a tenth of the total wasted. How has your agency tried to combat the apparently still growing abuse issue? Are there additional powers the legislature should give to the Office of the Medicaid Inspector General? The federal government says New York compares unfavorably against every other state. Are we looking to see what we can learn from elsewhere to reduce waste, fraud, and abuse? As the state continues to assume more of the local cost share of Medicaid, the budget difficulties we face at the state level could well become worse. These problems are both dire and immediate. I ask that you address these concerns so that my colleagues and I can work constructively with you to find a solution.

Respectfully yours,

Joseph Borelli Member of Assembly 62nd District