N.Y. state auditors say Medicaid overpaid by $77M

New York auditors say nursing homes were overpaid $46 million from Medicaid while the state-run program overpaid $31 million for hospital care for patients who died within 24 hours after they were admitted.

The audits fault the state Department of Health computer system for failing to deduct a portion of patients' Social Security, pensions and other income sources from their cost of nursing home care, and a new payment calculation intended to be fairer to hospitals.

Medicaid, with a $54 billion budget of state and federal funds this year, provides healthcare to 5.3 million low-income New Yorkers.

The Office of Medicaid Inspector General has been recovering the $46 million. The Health Department says the in-patient review should be regarded in a broader evaluation of the effective new payment system.