Government-Run Health Insurance Program Made Almost $19 Billion in Improper Payments in 2008Published: 2009-06-04 22:59:25Author: Marie Magleby | CNS News | May 1, 2009(CNSNews.com) - Medicaid, the government-run health insurance
program for low income people that is administered by state governments
and funded by federal taxpayers, made almost $19 billion in improper
payments in 2008, according to a report by the Government
Accountability Office last week.
These improper payments equaled the largest share--26 percent--of all improper government payments in 2008.
But
most of those payments were the result of errors, not deliberate fraud,
according to the U.S. Department of Health and Human Services (HHS),
which oversees Medicaid.
Improper payments include payments to
ineligible persons or for ineligible services, duplicate payments,
payments for services not received or full payments made when discounts
might apply.
According to the report, the U.S. government made
an estimated $72 billion overall in improper payments last year. Of
that total, Medicaid doled out almost $19 billion. Seventy-seven other
programs were responsible for the remaining $53 billion, and 11 other
programs did not report estimates for 2008.
But in an April 22 appearance before Congress, Deborah Taylor, acting
director and chief financial officer of the Centers for Medicare &
Medicaid Services at HHS, testified that procedural glitches, not
fraud, are the biggest cause of the problem.
“Most of the
improper payments . . . are generally not due to willful fraud,” she
told a panel of the Senate Homeland Security and Governmental Affairs
Committee. “Rather, most of these errors are the result of
documentation and processing mistakes.”
These mistakes include
inadequate documentation--which accounted for 90 percent of the
improper payments--pricing errors and payment for non-covered services.
Taylor also noted that “improper payments due to payment system errors
are routinely resolved and payment adjustments are made.”
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