Posted on 10/31/2002 6:01:41 AM PST by GailA
State Investigating Local Cab Company for Possible TennCare Fraud
Wednesday, a mid-state cab company is under investigation for possible TennCare fraud.
The charges involved alleged over billing that could amount to tens of thousands of taxpayer money.
In Nashville, Metro Health Department operators book rides to and from the doctor for TennCare patients. The operators make the arrangements with local cab companies and then bill TennCare based on the number of miles.
Depending on the distance the rides can range from 55 cents to $1.55 per mile for the state.
Bart Perkey oversees the program in Metro. He called the state earlier this month after an internal audit revealed billing irregularities involving American Rivergate Taxi.
"We found information that suggested to us there were questions that should be turned over to those authorities," Perkey said.
The Tennessee Bureau of Investigation is handling the investigation now.
Sources told NewsChannel 5 the probe focuses on whether American Taxi inflated the number of miles driven to increase its own income.
Former Nashville prosecutor Nick Bailey said if a company billed the state for more miles than were actually driven it would amount to fraud. "And then add to it if there's money you're charging for that you didn't earn -- that's theft"
A few dollars for a trip to the doctor may not sound like much but the transportation budget for TennCare in Davidson County alone is in excess of $1 million dollar and officials said American Rivergate Taxi is one of the largest providers.
The investigation is on going but there's a sign on the door at American Taxi that says effective immediately, all charge tickets must be filled out correctly.
Despite our repeated attempts there was no comment Wednesday night from the owner of American Rivergate Taxi.
Metro officials said the city would seek a way to more closely monitor the bills turned in by the cab companies.
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