Attorney General James Secures $1.85 Million Following Medicaid Fraud by Global IT Company

Computer Sciences Corporation Used Statewide 

Children’s Program to Misappropriate Taxpayer Funds

 New York Attorney General Letitia James reached an agreement with former multinational internet technology company, Computer Sciences Corporation (CSC), resulting in $1.85 million in recovered funds, with nearly $1 million earmarked for New York state. The investigation revealed that the company violated state and federal law by improperly processing Medicaid claims for services rendered as a part of New York’s Early Intervention Program, the statewide program for infants and toddlers under the age of three who might have a developmental delay or disability. 

“It is unconscionable that a company would be so irresponsible to cut corners on a program dedicated to our youngest New Yorkers in need of help and end up diverting hard-earned taxpayer dollars from where they need to go,” said Attorney General Letitia James. “On my watch, illegal schemes at the expense of taxpayers — or our children — will not go unchecked. My office will continue to hold providers and their agents who fail to appropriately and responsibly administer Medicaid programs in New York state accountable.”  

CSC, now known as DXC Technology, violated the U.S. and New York State False Claims Act between 2009 and 2013. As part of this agreement, CSC admitted that it performed insurance-claims-handling and -processing services on behalf of New York City regarding the City’s administration of the Early Intervention Program, which resulted in payments to the City that Medicaid would not otherwise have made. Specifically, CSC admitted that it utilized two coding mechanisms for their billing submissions that resulted in Medicaid making improper payments to the City. The investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow people to file civil actions on behalf of the government and share in any recovery. The whistleblower in this case will receive $416,250 of the settlement proceeds from New York state and the federal government, combined. The state of New York will receive $989,565. 

The investigation and settlement were the result of a coordinated effort among the Office of the Attorney General (OAG) and the U.S. Attorney’s Office for the Southern District of New York.