NYSARC

“The federal government paid New York State $700 million more in 2009 than the state needed to care for residents with developmental disabilities who lived in its institutions, according to the inspector general of the Department of Health and Human Services in Washington.

The finding suggested that billions of dollars earmarked for institutional care in New York had been used for other purposes over the last several years. No penalty is recommended, however, because the payments were approved by federal regulators.

Instead, the report recommends that federal and state officials do what they have already been trying to do for the last several months — negotiate a more accurate system of howMedicaid reimburses the state for care of those with developmental disabilities. The report also recommends that the new reimbursement system comply with federal requirements that ‘payment for services be consistent with efficiency and economy.’

[...] As part of the continuing negotiations, federal officials plan to scale back reimbursements to New York, but over a period of several years.“

Read the full New York Times article: http://www.nytimes.com/2012/05/19/nyregion/us-cites-medicaid-overpayments-to-new-york-state.html