United States intervenes in whistleblower action alleging New York City Dept. of Ed. fraudulently billed Medicaid for Psych services to special ed students

The United States is intervening in a whistleblower case brought against the New York City Department of Education for improperly billing Medicaid for psychological counseling services to special education students in the New York City public schools. Medicaid pays DOE a flat fee of $223 for each student which DOE provides at least two psychological counseling session in a month. If fewer than two sessions a month are provided Medicaid pays nothing. The complaint alleges that DOE knowingly billed Medicaid for counseling even though it provided fewer than two counseling sessions per month. Damages sought exceed two million dollars in this case.