Wednesday, September 25, 2019

Obama-Era Scheme Illegally Paid $227 Million to States as a Result of Miscalculations

The federal government incorrectly paid states hundreds of millions of dollars in bonuses to expand health care coverage before Obamacare's implementation.

The Obama administration erroneously sent $277 million to state governments that inflated the number of children enrolled in Medicaid and the Children's Health Insurance Program.

The Centers for Medicare & Medicaid Services distributed the bonus payments to states if they enrolled more children in health care programs than a baseline quota established by the CMS. The agency relied on data submitted by the states to evaluate how many kids were enrolled.

"CMS did not have access to accurate State data in time to make correct bonus payments and did not use these data once they became available to verify the accuracy of the current enrollment that the States reported," the IG report read. The inspector general's audit of all payments in the period found that 11 states including Alaska, Louisiana, and Virginia, overstated the number of children enrolled in state health care programs.

The states inflated the number of children under their care as a result of several miscalculations and administrative errors.

The IG report did not make clear whether states intentionally misreported their numbers to CMS. Alabama received $95 million from CMS-the most of any state-while the program was active even though it only qualified for $7 million in funding.

Three states have voluntarily returned the overpaid amounts, but $190 million remains uncollected.

https://freebeacon.com/issues/obama-era-scheme-illegally-paid-277-million-to-states/

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