GAO report says $14 Billion in wrongful billing to Medicaid by managed care orgs

The Government Accounting Office says that Medicaid wrongfully paid out more than $14 Billion to managed care organizations (MCO’s) which partner with states in providing health care services to patients. The improper payments included services that were not necessary, never performed or weren’t eligible for coverage.

MCO’s allow Medicaid beneficiaries to get their care through state run programs and are rapidly increasing. States that expand Medicaid programs through the Affordable Care Act will receive 100 percent reimbursement from the federal government for MCO’s in the next two years.

In 2013, Medicaid covered almost 72 million Americans and the program cost the taxpayers $430 billion annually. There are 7 million new Medicaid clients resulting from the new healthcare law.

Jeffrey Newman represents whistleblowers of Medicare  and Medicaid fraud.