NYC, CSC accused of Medicaid fraud

Computer Sciences Corp. and New York City are being accused by U.S. attorney Preet Bharara of conspiring to rip off the Medicaid program by millions of dollars, The New York Business Journal reports.

In the federal civil suit filed Monday in Manhattan, Bharara alleges that the city hired CSC to write computer programs to alter bills and skirt procedures in order to get Medicaid reimbursement for services to young children to pick up speed.

Medicaid rules in general require a city to exhaust efforts with private insurance companies to reimburse the city for services to developmentally disabled children under the age of three, but CSC allegedly wrote computer programs to alter bills so that private insurers would reject the claims, the New York Business Journal said.

Both New York City and CSC denied wrongdoing, saying that the dispute is about technical billing questions.