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Reading: Medicaid paid over $200 million to useless individuals in 2021 and 2022, federal watchdog says
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Medicaid paid over 0 million to useless individuals in 2021 and 2022, federal watchdog says
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Medicaid paid over $200 million to useless individuals in 2021 and 2022, federal watchdog says

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Last updated: December 25, 2025 2:24 am
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Published: December 25, 2025
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Medicaid packages made greater than $200 million in improper funds to well being care suppliers between 2021 and 2022 for individuals who had already died, based on a brand new report from the impartial watchdog for the Division of Well being and Human Companies.

However the division’s Workplace of Inspector Normal stated it expects a brand new provision in Republicans’ One Large Stunning Invoice requiring states to audit their Medicaid beneficiary lists could assist cut back these improper funds sooner or later.

These sorts of improper funds are “not distinctive to at least one state, and the problem continues to be persistent,” Aner Sanchez, assistant regional inspector common within the Workplace of Audit Companies informed The Related Press. Sanchez has been researching this problem for a decade.

The watchdog report launched Tuesday stated greater than $207.5 million in managed care funds have been made on behalf of deceased enrollees between July 2021 to July 2022. The workplace recommends that the federal authorities share extra data with state governments to get well the wrong funds — together with a Social Safety database referred to as the Full Loss of life Grasp File, which accommodates greater than 142 million information going again to 1899.

Sharing the Full Loss of life Grasp File knowledge has been tightly restricted attributable to privateness legal guidelines which shield towards identification theft and fraud.

The huge tax and spending invoice that was signed into legislation by President Donald Trump this summer time expands how the Full Loss of life Grasp File can be utilized by mandating Medicaid businesses to quarterly audit their supplier and beneficiary lists towards the file, starting in 2027. The intent is to cease funds to useless individuals and enhance accuracy.

Tuesday’s report is the primary nationwide have a look at improper Medicaid funds. Since 2016, HHS’ inspector common has carried out 18 audits on a collection of state packages and had recognized that Medicaid businesses had improperly made managed care funds on behalf of deceased enrollees totaling roughly $289 million.

The federal government had some success utilizing the Full Loss of life Grasp File to stop improper funds earlier this yr. In January, the Treasury Division reported that it had clawed again greater than $31 million in federal funds that improperly went to useless individuals as a part of a five-month pilot program after Congress gave Treasury momentary entry to the file for 3 years as a part of the 2021 appropriations invoice.

In the meantime, the Social Safety Administration has been making uncommon updates to the file itself, including and eradicating information, and complicating its use. As an illustration, the Trump administration in April moved to classify 1000’s of residing immigrants as useless and cancel their Social Safety numbers to crack down on immigrants who had been quickly allowed to dwell within the U.S. below packages began throughout the Biden administration.

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