New York state auditors uncovered $700 million in “improper” and “questionable” spending by Medicaid during fiscal year 2019, the New York Post reports, including $605 million in overpayments for prescription drugs dispensed by managed-care companies under contract with the NY Department of Health.
An additional $12 million was spent on health care for individuals who did not qualify for Medicaid, and $5 million was spent on care for deceased individuals, says state Comptroller Thomas DiNapoli.
“Hundreds of millions of dollars could be saved with better financial and management controls over the state’s Medicaid program,” DiNapoli said. The comptroller, whose office conducted five separate audits of the state’s Medicaid program, criticized the Department of Health for not monitoring payments to physicians and pharmacies more closely, and called on the DOH to pursue collecting the overspent funds. 