Health Law & Business News

Here’s Why Your Tax Dollars Are Overpaying for Medicaid

Jan. 2, 2019, 11:43 AM

Medicaid’s unique federal-state structure makes it difficult to recover inappropriate payments to doctors by the states, which means the money might never be collected.

States are responsible for collecting errant payments to doctors and hospitals under the low-income health program and forwarding the money to the federal government. The process is cumbersome, however, and close to $2 billion in overpayments going as far back as eight years have yet to be recovered.

Individual states run their own Medicaid programs and receive matching funds from the federal government. Overpayments happen when the states pay health-care providers more than the designated amount...

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