NY Audit: $1M Overpaid For Medicaid Recipients' Drugs

ALBANY, N.Y. (CBSNewYork/AP) - New York auditors say the state Health Department overpaid nearly $1 million in pharmacy claims for thousands of Medicaid recipients whose benefits were already covered by managed care plans.

The audit, covering 27 months, cites another $62,000 in overpayments to providers because of incorrect Medicare coinsurance, copayment or deductible amounts.

The federal and state-funded Medicaid program covers low-income New Yorkers.

The state comptroller's office says New York's program had 6.5 million people enrolled at the end of the last fiscal year, with claims of about $50.5 billion.

The state has begun moving recipients from fee-for-service coverage to managed care by organizations that get a monthly premium for each enrollee and arrange for medical services.

The Health Department agreed it should recover improper overpayments and formally instruct providers on correct billing.

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