Despite overpayments, NC Medicaid program on track for surplus year

After disputing claims it made significant overpayments to physicians last year, North Carolina’s Department of Health and Human Services said Tuesday the state Medicaid program is projected to end fiscal year 2015-16 with a surplus of $250 million, reports Winston-Salem Journal.

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This would be the third consecutive year the program ended with a surplus. It had $64 million cash on hand at the end of FY 2013-14 and $132 million on hand in 2014-15.

Three main factors contributed to the surplus, finance director for the Medicaid program Trey Sutten told the Winston-Salem Journal: lower service consumption by beneficiaries, flat enrollment rates and cost reductions due to changes in policy and population makeup.

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