Alaska asks providers to return $15M in Medicaid overpayments

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Alaska officials are asking medical providers to repay millions of dollars in Medicaid overpayments resulting from a billing error, according to a KTVA report.

The error reportedly occurred after a state-approved 10 percent cut to Medicaid payments to providers was not reflected in reimbursements that providers received. Now, the state's department of health and social services seeks $15 million back from an estimated 1,100 providers due to what the department's deputy commissioner, Jon Sherwood, called an "oversight."

"We did not catch that the work order to change this rate schedule had already been submitted to our vendor who manages those payments for us," Sherwood told KTVA.

The department said it will collaborate with providers to establish repayment plans and hopes to notify all of them of their owed amount by the end of July.

At least one provider expressed concerns in the report, including that providers might be hesitant to treat as many Medicaid patients due to reimbursement problems.

 

 

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