Edison Home Health Care of New York LLC and Preferred Home Health Care of New York LLC will pay a combined total of $17.25 million to settle allegations of Medicaid fraud and wage underpayment.

The settlement includes $7.5 million in back wages owed to over 25,000 current and former employees, alongside a $9.75 million payment to the Medicaid program.

This settlement marks the largest secured under the Wage Parity Act by the New York Attorney General’s Office and the U.S. Attorney’s Office for the Eastern District of New York.

The companies were found to have violated the New York Wage Parity Act, which mandates minimum wage and benefits for home health aides serving Medicaid recipients in specific counties.

They were accused of violating both federal and New York State False Claims Acts by failing to provide minimum wages and benefits to their home health aides.

Under the Wage Parity Act, home health aides are entitled to a base wage of $18.55 per hour plus additional benefits.

Home health aides, who are primarily women and many of whom are immigrants and people of color, perform essential tasks such as bathing, dressing, and feeding patients.

Investigations revealed that Edison and Preferred misallocated funds intended for wages and benefits, using them for improper expenditures like insurance.

Whistleblowers alerted authorities about the companies' practices, prompting the investigation and leading to the admission of wrongdoing by Edison and Preferred.

As part of the settlement, the agencies must implement policy changes, conduct employee training, and submit compliance reports for three years to avoid further penalties.

Attorney General James emphasized the importance of fair pay for home health aides, stating that the companies defrauded both employees and taxpayers.

The joint investigation was conducted by the Office of the United States Attorney for the Eastern District of New York and the New York State Attorney General’s Office.