A complaint was filed under the Qui Tam Whistleblower Provisions of the Federal False Claims Act alleging that the New York City Department of Education billed Medicaid for Psychological Services given to Special Education students. The government, specifically the US Attorney for the Eastern District, Loretta E. Lynch, announced that the US Government will intervene in this matter.
The complaint, filed on behalf of the United States government, related to a Medicaid flat fee of $223 for each of the special education students that received a minimum of two psychological counseling sessions per month provided by the Department of Education. The stipulations of this contract prohibited the Department of Education from receiving funds from Medicaid if an individual student did not receive the minimum of two counseling sessions.
Allegedly, between 2001 and 2004, the Department of Education intentionally billed Medicaid for counseling services which did not meet the session minimum outlined in the contract. The United States is seeking treble damages, penalties and costs from the Department of Education which are in excess of $2 million.