Red Flags Raised Over Medicaid Spending On Institutions

As federal officials investigate reports that Medicaid spends $1.6 million annually to support each resident in New York institutions, newly uncovered documents show just how reliant the state is on its unusual funding method.

The new information comes months after it was revealed that New York is reimbursed by Medicaid at a rate of $4,556 per person daily for each institutional resident, more than four times the cost of care at similar facilities in other states. Since the federal government matches state contributions to Medicaid, half of this money comes from Washington.

In a confidential PowerPoint presentation obtained by the Poughkeepsie Journal, New York officials encouraged maintaining the status quo. Otherwise the state risked losing about $1.4 billion in Medicaid funds, the document indicated.

State officials say that not all of the money is actually spent on the institution residents, but that much of it is used to fund other programs in the state for residents with disabilities. Now, federal officials are investigating the payments, reports the Poughkeepsie (N.Y.) Journal. To read more click here.