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Reading: Medicaid paid over $200 million to lifeless folks in 2021 and 2022, federal watchdog says | Fortune
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Asolica > Blog > Business > Medicaid paid over $200 million to lifeless folks in 2021 and 2022, federal watchdog says | Fortune
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Medicaid paid over $200 million to lifeless folks in 2021 and 2022, federal watchdog says | Fortune

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Last updated: December 24, 2025 10:45 pm
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5 months ago
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Medicaid paid over 0 million to lifeless folks in 2021 and 2022, federal watchdog says | Fortune
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Medicaid paid over $200 million to lifeless folks in 2021 and 2022, federal watchdog says | Fortune

Medicaid applications made greater than $200 million in improper funds to well being care suppliers between 2021 and 2022 for individuals who had already died, in line with a brand new report from the unbiased watchdog for the Division of Well being and Human Providers.

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

These sorts of improper funds are “not unique to one state, and the issue continues to be persistent,” Aner Sanchez, assistant regional inspector normal within the Workplace of Audit Providers advised The Related Press. Sanchez has been researching this challenge 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 inaccurate funds — together with a Social Safety database often called the Full Dying Grasp File, which accommodates greater than 142 million information going again to 1899.

Sharing the Full Dying Grasp File knowledge has been tightly restricted because of privateness legal guidelines which defend in opposition to identification theft and fraud.

The large tax and spending invoice that was signed into regulation by President Donald Trump this summer season expands how the Full Dying Grasp File can be utilized by mandating Medicaid companies to quarterly audit their supplier and beneficiary lists in opposition to the file, starting in 2027. The intent is to cease funds to lifeless folks and enhance accuracy.

Tuesday’s report is the primary nationwide take a look at improper Medicaid funds. Since 2016, HHS’ inspector normal has performed 18 audits on a collection of state applications and had recognized that Medicaid companies had improperly made managed care funds on behalf of deceased enrollees totaling roughly $289 million.

The federal government had some success utilizing the Full Dying Grasp File to stop improper funds earlier this 12 months. In January, the Treasury Division reported that it had clawed again greater than $31 million in federal funds that improperly went to lifeless folks as a part of a five-month pilot program after Congress gave Treasury non permanent 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 hundreds of residing immigrants as lifeless and cancel their Social Safety numbers to crack down on immigrants who had been quickly allowed to dwell within the U.S. beneath applications began through the Biden administration.

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