Virginia to Limit Reimbursable Non-Emergency Transportation for Medicaid Beneficiaries to Two Companies

As part of a statewide effort to counter Medicaid fraud, Virginia beginning in July will only cover non-emergency transportation for Medicaid beneficiaries if it is scheduled through two companies the state has contracted with, the Richmond Times-Dispatch reports. In fiscal year 2000, Virginia spent $54 million of its $3.1 billion Medicaid budget on transportation services, which are provided to beneficiaries with "no other means" of available transportation. Transportation fraud, which includes overbilling and billing for nonexistent trips, accounts for 19 of 76 Medicaid provider fraud cases the state is investigating -- the largest percentage of any category, the Times-Dispatch reports. Under the new system, Medicaid beneficiaries will call one of two companies -- Reston, Va.-based DynCorp and College Park, Ga.-based LogistiCare -- that will arrange the trips with "local vendors." Medicaid managed care beneficiaries will not be affected by the changes. By changing the system, the state anticipates saving $60 million over the next two fiscal years. The new system also will "ensure coordination of care," Leah Hamaker, spokesperson for the Department of Medical Assistance Services, said (Smith, Richmond Times-Dispatch, 5/26).