All American Homecare Company and Crown of Life Care Submitted False
Claims to Medicaid and Didn’t Pay Tens of millions of {Dollars} in Wages to Workers
Corporations Comply with Pay $5.4 Million to Medicaid and
Crown Agrees to Return $1.5 Million to Workers Cheated Out of Wages
NEW YORK – New York Lawyer Basic Letitia James introduced agreements with two house well being companies for dishonest staff out of wages and submitting false Medicaid claims. Beneath the phrases of the agreements, All American Homecare Company, Inc. (All American) repaid $4 million and Crown of Life Care NY LLC (Crown) will return $1.4 million to the Medicaid program. Crown will even pay greater than $1.5 million for distribution to staff that have been cheated out of their wages. Each All American and Crown have admitted to their wrongful conduct and have concurrently entered into settlement agreements with the U.S. Lawyer’s Workplace for the Jap District of New York (EDNY) to resolve their Medicaid fraud legal responsibility.
“Residence well being aides present important take care of our most susceptible, and so they should be pretty compensated for his or her work,” mentioned Lawyer Basic James. “Not solely did these firms shamelessly cheat their employees, in addition they cheated our state and stole from communities that want it most. My workplace won’t ever tolerate fraud of any form, and we’ll proceed to do the whole lot we are able to to make sure that New Yorkers get their truthful pay and therapy.”
“It’s outrageous to cheat house well being aides of their hard-earned advantages assured below New York legislation and the Medicaid program,” mentioned U.S. Lawyer for the Jap District of New York Breon Peace. “These settlements replicate this workplace’s agency dedication to stopping fraud in authorities packages and defending house well being aides — who carry out bodily and emotionally taxing work in caring for a number of the members of our group most in want.”
The New York Wage Parity Act units wage and profit minimums that state-licensed house care companies companies (LHCSAs) are required to pay employees who carry out house well being aide and private care companies to Medicaid recipients. Beneath the legislation, employees are at the moment entitled to a base wage of $15.00 per hour that companies should pay, and a further $4.09 per hour in New York Metropolis and $3.22 in Nassau, Suffolk, and Westchester counties. Reimbursement by the Medicaid program for companies rendered to Medicaid recipients is conditioned upon compliance with these wage and profit necessities.
The joint investigation by the Workplace of the Lawyer Basic (OAG) and EDNY discovered that each All American and Crown did not pay their house well being aides the required wages and advantages owed to them pursuant to the Wage Parity Act; unlawfully sought fee from Medicaid and obtained cash for care carried out by aides who have been underpaid; and falsely licensed compliance with the Wage Parity Act.
Between April 2014 and December 2018, Crown underpaid its house care aides by greater than $1.5 million, all of which is able to now be repaid to present and former staff impacted by Crown’s wage parity points. Of that quantity, $1,167,050 will likely be paid to OAG for distribution to the impacted house well being aides and $411,000 will likely be paid within the type of paid time without work for present aides who’re owed again wages. Crown will even pay $1.4 million to the Medicaid program, of which $840,000 will likely be paid to the state and the remaining $560,000 will likely be paid to the federal authorities. Additionally as a part of its settlement with OAG’s Labor Bureau, Crown is required to revise firm insurance policies and procedures; prepare personnel on up to date insurance policies topic to OAG’s approval; and recurrently report employees wages and coverage implementations to OAG for six years. If Crown fails to adjust to these phrases or correctly compensate its aides, OAG has the authority to convey a civil motion towards the company and demand $15,000 in liquidated damages for violating its authorized obligations.
Though All American offered sure advantages to its employees, it didn’t well timed pay the complete $4.09 per hour required by legislation. Through the investigation, All American remunerated its impacted house well being aides by depositing cash into present staff’ 401(ok) accounts and issuing checks for again pay to former staff. All American has now repaid $4 million to Medicaid to resolve its legal responsibility for submitting false claims. Beneath the phrases of the agreements, All American will even self-report to OAG for a two-year interval to make sure continued compliance with the Wage Parity Act.
The OAG’s Labor Bureau and Medicaid Fraud Management Unit (MFCU), at the side of EDNY, commenced these investigations after whistleblowers filed a criticism below the qui tam provisions of the New York False Claims Act, in addition to the federal False Claims Act, within the U.S. District Courtroom for the Jap District of New York. The New York False Claims Act permits people to file actions on behalf of the federal government and share in any restoration. The whistleblowers’ criticism alleged that All American and Crown did not pay their house well being aides the statutorily required quantity pursuant to Wage Parity. The state has since filed a discover of intervention towards each firms with these settlement agreements. That is additionally the Labor Bureau’s largest settlement to this point for violations of the Wage Parity Act and is an important victory in Lawyer Basic James’ ongoing efforts to defending New Yorkers’ rights and wages.
“Thanks to Lawyer Basic James and her employees, who investigated and made certain that issues are truthful and that justice is served,” mentioned Carmen Perez Collado, a former Crown of Life Care employee. “I’m grateful that our laborious work of caring for people at house is valued and acknowledged.”
“Thanks, Lawyer Basic Letitia James, for making an allowance for our work and for investigating the corporate, as there have been some irregularities,” mentioned Susana, a house well being aide.
MFCU’s whole funding for federal fiscal yr (FY) 2022 is $59,918,216. Of that whole, 75 p.c — or $44,938,664 — is awarded below a grant from the U.S. Division of Well being and Human Providers. The remaining 25 p.c of the accredited grant — totaling $14,979,552 for FY 2022 — is funded by New York state. By its recoveries in legislation enforcement actions, MFCU recurrently returns extra to the state than it receives in state funding.
The investigations and settlements have been a coordinated effort between OAG and the U.S. Lawyer’s Workplace for the Jap District of New York.
Each the All American and Crown investigations have been dealt with for MFCU by Particular Assistant Attorneys Basic Jill D. Brenner, Ting Ting Tam, and Hillary Grey Chapman, with the help of MFCU Civil Enforcement Division Chief Alee N. Scott. The instances have been investigated by Principal Auditor Investigator Milan Shah and Auditor-Investigator Khristian Diaz, with the help of Regional Chief Auditor Stacey Millis. Further investigative help was offered by Detective Aristotle Psathas, with the help of MFCU Deputy Chief Government Officer Kenneth Morgan. MFCU is led by Director Amy Held and Assistant Deputy Lawyer Basic Paul J. Mahoney. The Division for Felony Justice is led by Chief Deputy Lawyer Basic José Maldonado.
The Crown investigation was dealt with within the Labor Bureau by Assistant Attorneys Basic Anielka Sanchez Godinez and Kristen Ferguson, with the help of Civil Enforcement Part Chief Fiona J. Kaye and Former Civil Enforcement Part Chief Ming-Qi Chu, below the supervision of Deputy Bureau Chief Julie Ulmet and Labor Bureau Chief Karen Cacace. Further Help was offered by Knowledge Scientist Chansoo Track and Deputy Director Megan Thorsfeldt of the Analysis and Analytics Division. The Labor Bureau is part of the Division for Social Justice and is led by Chief Deputy Lawyer Basic Meagan Fake. Each the Division for Felony Justice and the Division for Social Justice are overseen by First Deputy Lawyer Basic Jennifer Levy.