N.Y. comptroller: Medicaid billing system pays $95 million in wrong bills

N.Y. comptroller: Medicaid billing system pays $95 million in wrong bills

New York state comptroller Carl H. McCall charged that weaknesses in the state's Medicaid billing system have led to more than $95 million in potentially incorrect Medicaid payments over the past seven years, of which $40 million remains uncollected.

New York's Medicaid Management Information System is being redesigned under a contract issued to Computer Sciences Corp. in May 2000, according to McCall's office. The new system, eMedNY, has not yet been implemented, McCall's office said.

'We are told these problems will be solved with the new computer system, but in the meantime millions of Medicaid dollars are being wasted,' McCall said in a statement.

The Health Department has recouped $20.8 million in incorrect payments, many of which had been made because Medicaid was billed for charges that should have been paid by Medicare or another insurance provider, according to McCall's office.

Health department officials said in written responses to McCall's audits that they would review all questionable claims and recover overpayments. The department plans to review other health insurance coverage of its Medicaid beneficiaries to assure that the program is not being improperly billed.

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