Michigan – Michigan Attorney General Dana Nessel said that three people from Michigan have been charged in connection with an alleged plan to defraud the state’s Medicaid transportation reimbursement program.
Last week, Bernice Marie Pate, 51, of Inkster, was charged in the 54B District Court in East Lansing. She faces 10 charges of Medicaid Fraud—False Claim, each of which could result in up to four years in jail. Wanda Rose Spivey, 55, from Taylor, and Ashley Eliza Mendoza, 34, from Detroit, were also charged with five counts of the same crime in the same court earlier this week.
The case is about Michigan’s Medicaid transportation benefit, which pays registered participants for the miles they drive to approved medical visits. The idea employs a smartphone app that uses GPS data to keep track of how far people travel. This makes the process easier. A payment card that can be used like a regular debit card is loaded with money for the trip once it has been validated.
Prosecutors said that Pate, Spivey, and Mendoza used a second app to fake GPS data, which they say was against the law. According to the police, this made it look like they had gone to medical visits when they hadn’t. Because of this, fake requests for reimbursement were made and authorized, which took money away from the program that was meant for real medical needs.
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The Michigan Department of Health and Human Services Office of Inspector General (DHHS-OIG) sent the case to the Attorney General’s Health Care Fraud Division, which is the state’s Medicaid Fraud Control Unit. Nessel spoke out against the suspected misuse of a program meant to help vulnerable residents get the care they need.
“Taking advantage of a program designed to help those in need get to necessary medical services is deplorable,” said Nessel. “I commend the DHHS Office of Inspector General for their work on this case. This remains an active investigation, and my office is committed to holding those who engaged in this conduct accountable.”
Spivey and Mendoza were arraigned on October 6, while Pate appeared before Judge Molly Hennessey Greenwalt on October 8. A $50,000 personal recognizance bail was set for all three accused. They are due to appear in court again on October 17 for a probable cause conference and on October 23 for a preliminary examination.
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The Health Care Fraud Division, which is in charge of the prosecution, gets 75% of its money, which is about $5.5 million, from the U.S. Department of Health and Human Services. The State of Michigan gives the other 25%, or about $1.8 million. The investigation into the fraudulent claims remains ongoing.