New York creates office to address Medicaid waste

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New York Gov. George Pataki this week established an independent office of inspector general to crack down on fraud and waste in the state Medicaid program.

His actions follow a two-day New York Times series highlighting billions of dollars in waste in the program. Nursing homes were among several entities that profited illegally from the program.

New York recovered an average of 72 cents for each federal dollar the state received to address Medicaid fraud between 2001 and 2003, according to Rep. John Sweeney (R) and state Sen. Dean Skelos (R). That compares to Texas, which recovered $4.96 for each federal dollar spent, and California, which recovered $1.98 for each federal dollar spent.