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PRESS RELEASE: AG CANDIDATE MICHAEL HENRY CALLS ON LETITIA JAMES TO RETURN CORRUPTION CASH

FOR IMMEDIATE RELEASE

September 19, 2022

AG CANDIDATE MICHAEL HENRY CALLS on LETITIA JAMES to RETURN CORRUPTION CASH

Medicaid Transportation company embroiled in Kathy Hochul pay-to-play scandal also cited in audit for overbilling state and federal Medicaid reimbursements.

James refuses to heed Henry’s call to investigate

New York, NY — New York State Attorney General Candidate Michael Henry today demanded his opponent, Letitia James, return corruption cash from the owner of Medical Answering Services, a company embroiled in a pay-to-play scandal that James refuses to investigate.

The company was awarded a nearly billion a year statewide contract after owner Russ Maxwell and his husband, Morgan McDole, donated over $100,000 to Kathy Hochul and the state Democratic Party campaign accounts. McDole hosted a fundraiser for Hochul during the bidding process which appears to directly violate State Finance Law.

“Letitia James refuses to crackdown on rampant corruption corroding the corridors of Albany. Our government is not for sale. She must immediately refund this corruption cash or it will now have the appearance that there’s no investigation because she received these donations. This seems to be the way career politicians do business in Albany and I’m running to stop it,” said Henry.

On top of the shady deal for a statewide Medicaid transportation management contract, Medical Answering Services, is now under fire for overbilling that resulted in $196 million more state and federal Medicaid reimbursements, a new federal audit by the Office of the Inspector General revealed.

The audit found that while operating in the New York City region, Medical Answering Services did not properly maintain records, did not receive proper authorizations to authorize rides for patients and did not verify other important details regarding vehicles and drivers. This resulted in overpayments which must be refunded.

The state health department conceded to $110 million in overpayments.

Medical Answering Services was awarded a statewide bid to perform this service throughout the entire state. The Medicaid Redesign Team II put an end to regional operation.

“This new audit is another red flag. New Yorkers are paying for corruption. It appears that a company with shoddy practices that overbilled the state and federal Medicaid system will now be rewarded simply because its owner lavished donations on the governor. Worse, it seems my opponent won’t do the right thing and investigate because she’s also a recipient of corruption money,” Henry added.

Attachments: IG Report and donation records

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