Healthfirst To Pay $35M Over Medicaid Fraud

Law360, New York (September 3, 2008, 12:00 AM EDT) -- Healthfirst, the largest Medicaid managed-care provider in New York state, has agreed to pay $35 million to settle an investigation into its prior marketing practices.

According to New York Attorney General Andrew M. Cuomo, who announced the settlement Wednesday, Healthfirst filed false marketing plans with New York City, the New York State Department of Health and local social services districts in Long Island.

Though Healthfirst declared that its marketing representatives were compensated based solely on qualitative criteria, they were actually paid bonuses and other incentives based...
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