NY Overbilled Medicaid $701M For Special Needs Patients: OIG

Law360, New York (May 18, 2012, 5:28 PM EDT) -- The federal government could have saved $701 million in Medicaid payouts to New York in 2009 if the state had properly gauged its costs for treating patients with intellectual and developmental disabilities, the U.S. Office of Inspector General said Thursday.

The state's use of a complex methodology called "total reimbursable operating costs" — as opposed to its actual costs — resulted in the massive overpayment, according to a report issued by Inspector General Daniel R. Levinson.

"The state claimed significantly more for developmental center services than...
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