NEW YORK, NY June 06, 2006 —A day after federal authorities slammed the state's inability to fight Medicaid fraud, officials are either calling for more action from Albany, or defending their efforts to date.

The report of the Centers for Medicaid and Medicare Services faulted the state Health Department and Attorney General's office for ineffectively policing the nation's largest public health payment system. The state screens Medicaid providers - doctors, pharmacists and others - but flags only a small number - fewer than 300 out of almost 150,000.

State Senator Dean Skelos from Nassau County says local fraud detectors recoup .1 percent of the Medicaid budget, compared with roughly 5 percent in Texas, which he says has a much stronger Inspector General. The Governor's office said in the last year it has instituted sweeping reforms and expanded the budget for enforcement workers - something the report said were sorely lacking.

The Attorney General is lobbying to pass two Medicaid reform bills in the legislature, one calling for greater investigative authority and the other to increase incentives for whistle-blowers and informants.