News-At-A-Glance:New York City Education Department Settles False Claims Complaint

The New York City Department of Education (DOE) allegedly submitted false claims to the Medicaid program for psychological counseling services to special education students in New York public schools. According to Loretta E. Lynch, U.S. attorney for the Eastern District of New York, Medicaid pays the DOE a flat rate of $223 for each student who receives counseling services at least twice each month. The DOE receives no payments if an individual does not receive at least two counseling sessions. The complaint alleges that the DOE knowingly billed for the services even when its own records showed that students had not received the requisite number of counseling sessions. According to a statement by Lynch, “When Medicaid shells out scarce dollars for services that are not provided, both the students in need of psychological support and the public fisc are harmed.” The DOE paid $1,375,000 to settle the complaint and an additional $40,000 in attorneys’ fees. The whistleblower in the case, Dana Ohlmeyer, will receive $206,250 or 15 percent of the settlement amount.