Lawsuit Alleges Medicaid Fraud In Michigan Child Welfare System

The Michigan Citizen
July 27, 2009

HAMTRAMCK, MICHIGAN — Michigan Children’s Ombudsman Verlie Ruffin has failed to report violations of state and federal law to the state Attorney General in order to “cover-up” Medicaid fraud committed by individual state agents, and privately contracted agencies of the state, according to a lawsuit filed in April.

Questions surround Targeted Case Management, a Medicaid-funded program for state foster care, adoption, and juvenile delinquency.

The lawsuit, filed in the state Court of Appeals, further alleges that Michigan Attorney General Mike Cox, defending the state Ombudsman, has failed to intervene in prosecuting Medicaid fraud in child welfare. Beverly Tran, who filed this action, is one of the candidates seeking the Hamtramck, Mich. office of city council.

Tran says that there has not been a single referral to the Attorney General since the office was created. She goes on to say that the state Auditor General has documented an estimated $1.8 billion in questionable and improper payments. “That’s why the U.S. Department of Health and Human Services Office of Inspector General has partnered with the U.S. Department of Justice Attorney General to create the Health Care Fraud Enforcement Prevention Team (H.E.A.T.) and is now in Michigan.”

UPDATE: The Michigan Senate has announced that "there is evidence of ongoing and large scale Medicaid fraud.