California’s Medicaid Reimbursement Debt Jumps to $1.7 Billion

California budget officials have revised to $1.7 billion the amount the state owes the federal government for improper Medicaid reimbursements.

The state must repay $1.6 billion for health services that relied on federal funds but were not eligible for them, as well as $148 million for the Specialty Mental Health Services program and drug services covered by Medi-Cal, Department of Health Care Services spokesman Anthony Cava said in an email.

California intends to repay the Centers for Medicare & Medicaid Services in the coming budget year, Cava said. The state’s Senate Committee on Budget and Fiscal Review directed the administration ...