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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.

(TM and © Copyright 2015 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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