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Audit: Medicaid Program Squandered More Than $500M

Jim Levulis
Massachusetts Auditor Suzanne Bump

A state audit suggests the Massachusetts Medicaid program squandered more than $500 million through unnecessary payments or missed savings opportunities in its managed care program.State Auditor Suzanne Bump released her findings Tuesday, saying it represented the highest dollar value of a state audit in the past 27 years.  

The report covers the period of October 2009 to September 2014.

It found MassHealth — the state Medicaid program — made $233 million in unnecessary direct payments for medical services that should have been paid for by managed care organizations. The audit also suggested the state could have saved up to $288 million through more specific structuring of managed care contracts.

In a response included with the audit, MassHealth says it believes that $127 million in payments questioned by Bump were appropriate.

Copyright 2015 The Associated Press. All rights reserved.

Jim is WAMC’s Associate News Director and hosts WAMC's flagship news programs: Midday Magazine, Northeast Report and Northeast Report Late Edition. Email: jlevulis@wamc.org
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