Citing significant cost increases and widespread fraud, Senator George Borrello and members of the Senate Republican Conference have called on Governor Kathy Hochul to dismantle New York’s centralized Medicaid transportation broker model. They are urging a return of operational control and funding to county governments.
In their letter to the governor, the Senators highlighted the Non-Emergency Medical Transportation (NEMT) program as a primary example of dysfunction within New York’s Medicaid system. They noted that since the state’s takeover in 2011 and outsourcing to private brokers, costs have surged, with tens of millions of dollars lost through fraudulent claims.
“Medicaid transportation used to be a local responsibility, run cost-effectively by counties that understood their communities. Now it’s a billion-dollar boondoggle run by unaccountable brokers who answer to no one, while fraud is exploding and taxpayers are getting ripped off,” said Senator George Borrello. “This isn’t about politics — it’s about protecting taxpayer dollars and ensuring services are there for those who truly need them.”
Senator Borrello also mentioned that former Governor Cuomo tasked the Medicaid Redesign Team II in 2020 with identifying savings within Medicaid due to escalating costs. The team’s research found that a major driver of increased expenses was the NEMT program. It was revealed that after state intervention, taxi use increased by 800 percent, leading to a 131 percent rise in statewide spending.
The lack of accountability has been previously cited by Comptroller Tom DiNapoli and has recently been under scrutiny by the New York Attorney General’s office. The letter outlined several high-profile fraud cases linked to the broker-run system over the past year, identifying more than $20 million in theft through guilty pleas, settlements, and ongoing investigations.
With an expected $750 million Medicaid shortfall this quarter and potential federal funding reductions on the horizon, Senators assert that the state can no longer ignore these issues.
“We’re urging Governor Hochul to stop passing blame to Washington and take responsibility for fixing a broken system in her own backyard,” Borrello added. “Let’s end this fraud-riddled program and return oversight to the counties, where there’s accountability and transparency.”
A full copy of the letter is attached.
