Governor Promises Tighter Controls After Medicaid Paid For Dead People

(CBS) -- Governor Quinn is promising tighter controls after a review found that the Illinois Medicaid program paid an estimated $12 million for medical services for people who were dead.

Quinn was clearly displeased.

"I wasn't happy to see that. As a matter of fact, we have to put in even tighter controls, but we are going to recoup every single dollar," said Quinn.

The state auditor found the problem by comparing Medicaid rolls with state death records dating back to 1970. The overpayments involved 2,900 people.

Quinn said in most cases, managed-care insurance companies billed the state improperly.

Legislative Republicans want the state to re-hire a private firm, Maximum Health Services, to verify Medicaid eligibility, but Quinn insists state employees can do the job.