Audit Finds NYS Medicaid System Improperly Paid Over $16 Million in Claims

An audit recently released by New York State Comptroller Thomas DiNapoli finds that the State Department of Health’s eMedNY computer system improperly paid $16.2 million in Medicaid claims during a six-month period that started in October 2023. Overall, the audit found 370 million claims were processed between October 2023 through March 2024, totaling nearly $49.6 billion.

The bulk of the improper payments, $11.8 million, went to pay 27,480 Medicaid managed care premiums for recipients who were ineligible for managed care coverage because they had comprehensive third-party insurance and should have been enrolled in Medicaid fee-for-service instead. As a result of the audit, more than $2.8 million in improper payments have already been recovered.

Some of the other key findings in the audit include:

  • $2 million was paid for fee-for-service inpatient claims that should have been paid by managed care.
  • $1.3 million was paid for newborn birth and maternity claims that contained inaccurate information, such as low newborn birth weights that increased reimbursements.
  • $964,333 was paid for inpatient, pharmacy, referred ambulatory, and clinic claims that did not comply with Medicaid policies.
  • $126,786 was paid for claims where Medicaid was incorrectly designated as the primary payer instead of another insurer.
  • $35,441 was paid for managed care premiums on behalf of incarcerated recipients whose managed care coverage should have been suspended.

The audit also identified 10 Medicaid providers who were charged with or found guilty of crimes that violated laws or regulations governing certain health care programs. In response to the findings, DOH removed nine of the providers from the Medicaid program and had not yet resolved the program status of the remaining provider…

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