Minnesota paid $3.7M for dead Medicaid recipients, OIG finds

Minnesota paid managed care organizations $3.7 million in unallowable capitation payments for dead beneficiaries from 2014-16, according to an audit from the HHS Office of Inspector General.

OIG's audit examined 6,318 capitation payments totaling $4.4 million. Auditors found Minnesota didn't always identify and correctly process death information for Medicaid beneficiaries. OIG noted the state was undergoing an overhaul of its managed care eligibility and enrollment system during the audit period.

OIG recommended Minnesota refund $3.2 million in federal overpayments to the government. The state said it would review the beneficiary and death date information it received from OIG and return any federal funds it validated as overpayments. 

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