California Agrees to Pay Feds Over Improperly Claimed Aid Disbursement

(FeaturedHeadlines.com) Government-run Medicaid programs are intended to help US citizens and certain qualified non-citizens gain access to health care. However, the state of California now owes the federal government more than $52 million for improperly claiming Medicaid reimbursements for unqualified immigrants.

An audit by the inspector general of the US Department of Health and Human Services found that California filed $52.7 million in federal Medicaid reimbursements out of line with requirements. The audit reviewed more than $372 million in reimbursements for non-citizens during fiscal year 2019.

The California Department of Health Care Services said that it intends to fully repay the federal government by June 30, 2024. Moreover, the state government has worked with their federal counterparts to implement a new service identification system that includes improved processes.

States are not generally permitted to claim federal reimbursements for treatment provided to non-citizens, except in cases involving medical emergencies. California improperly claimed reimbursements using an outdated proxy percentage for non-emergency services to non-citizens, which was lower than the actual figure.

California did not maintain policies and procedures to review the proxy percentage, according to the audit. The state government said that it does not dispute the audit’s findings.

The state will have to repay the federal government, despite already having a budget deficit of at least $26.7 billion. That figure includes approximately $3.1 billion in spending on health care coverage for illegal immigrants.

California began providing free health care access to more than 700,000 illegal immigrants through its state Medicaid program. California Governor Gavin Newsom proposed the policy when the state maintained a record budget surplus, which has since disappeared. California aims to provide health care coverage to all of its approximately 39 million residents.

Although the plan is ambitious, it appears as though it could set the state’s finances back further unless they improve their accounting processes to avoid owing the federal government money at a later date.

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