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NC Medicaid's management criticized in new audit


Associated Press

RALEIGH, NC (AP) -- North Carolina Gov. Pat McCrory says he is withholding judgment on whether the state should expand Medicaid under the federal Affordable Care Act until his administration can fix serious mismanagement within the program.

McCrory spoke Thursday as State Auditor Beth Wood released a 70-page critique of the Division of Medical Assistance.

The audit found that administrative spending for the state's Medicaid system is significantly higher than nine states of similar size. The audit also found state Medicaid administrators used flawed or incomplete budget forecasting methods, resulting in shortfalls of more than $190 million last year.

Medicaid provides health coverage for more than 1.5 million North Carolina residents - most of them poor children, older adults and the disabled. The program spends about $13 billion in state and federal funds.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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How bad is it?

The study covered 3 years.
Over payments to contractors and vendors averaged $1.4B per year or $4.2 BILLION for the 3 year period. Administration costs added another half billion to that so we're looking at almost $5B over 3 years.
This is NOT people getting benny's they don't deserve.
This is contractors over charging the state and the state not catching them.
Individual medicaid fraud is far less expensive than this.............


Why am I not surpised

That we OVER spent and used faulty projections.
Sounds like the ball park situation.

Glad Gov Perdue approved the audit