Louisiana health and legal officials have failed to properly manage a fund that pays for investigations and prosecutions of health care providers accused of bilking the state Medicaid program, according to an audit released Monday, the latest of several reports criticizing Medicaid oversight.
The state’s health department and the attorney general’s office didn’t identify and deposit the required money into the Medicaid Fraud Fund, shortchanging the effort to combat fraud, the legislative auditor said in the report.
Auditors said about $3.5 million that should have been used to track and prosecute Medicaid fraud wasn’t deposited during the 2012 through 2017 budget years. The auditor’s office said the two agencies “lack an effective process to properly identify and deposit monies” into the fund as outlined in state law.
Both the health department and the attorney general’s office said the dollars were transferred to the fraud-detection fund as required when the problems were identified by auditors.
Health department officials blamed policies of former Gov. Bobby Jindal’s administration for the improper diversion of $2.8 million in fines and penalties over the six-year period, saying corrective changes have been made under Gov. John Bel Edwards’ administration.
“We have been correcting a problem that was inherited from the previous administration, and that was brought to our attention by the auditor,” Cindy Rives, chief financial officer for the health department, said in a statement Monday.
She added: “It is important to note that these funds were properly accounted for and reported every year.”
The report also found the health department misspent more than $477,000 from the fund on salaries that didn’t appear to involve preventing and detecting Medicaid fraud and abuse. The agency said it’s correcting that issue.
The health department used another $643,000 to pay for software that was unusable because it didn’t match agency computer systems, auditors wrote.
The report is the latest by Legislative Auditor Daryl Purpera’s office to raise issues about the management of Louisiana’s more than $12 billion Medicaid program.
