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State audit finds millions in Medicaid overpayments

State Comptroller Thomas DiNapoli
State Comptroller Thomas DiNapoli

By Andrew Polino

Buffalo, NY – State Comptroller Thomas DiNapoli says New York's Medicaid program is wasting millions of dollars in unnecessary hospital payments.

DiNapoli released the results of audits of the Medicaid program Monday during a news conference in Albany. He says hospitals are being overpaid for their services for readmitted patients and for patients treated in out-of-state hospitals.

"My auditors found that the Department of Health substantially overpaid out-of-state providers about $21.4 million for services going back as far as the year 2002," DiNapoli said. "It's outrageous that out-of-state hospitals can cash in on New York's Medicaid recipients because New York is relying on outdated information."

In one case, DiNapoli said the state paid an Ohio hospital $1.5 million for a service that should have cost $117,000.

DiNapoli says the Health Department has acknowledged the problems and are working on fixing them.