Audit faults New York for lack of Medicaid oversight - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Health/Employee Benefits News
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Health/Employee Benefits News RSS Get our newsletter
Order Prints
November 13, 2025 Health/Employee Benefits News
Share
Share
Post
Email

Audit faults New York for lack of Medicaid oversight

By Chris Wade | The Center Square contributorThe Center Square Health Care

(The Center Square) — New York state health officials allowed millions of dollars in "improper" Medicaid payments to flow to providers due to a lack of oversight, according to a new audit by the state's fiscal watchdog.

The report by state Comptroller Tom DiNapoli said the New York Department of Health, which administers the state and federally funded Medicaid program, failed to "adequately monitor" the benefits process and allowed medical providers to overbill the state by more than $10.2 million for charges that should have been covered by third-party insurers.

The overbilling, which spanned from December 2020 to May 2024, included 17 claims of $1,775,326, caused by an internal processing error at one Medicare Advantage plan, and 41 claims $3,220 for Medicaid claims that were not supported by documentation, according to the audit.

"We found that DOH has not established adequate controls over the coordination of benefits process to identify claims with such errors and prevent overpayments to providers," state auditors wrote in the report.

Auditors pointed out that the overpayments represented only a sliver of the $93 billion in annual Medicaid payments to the states 8.4 million recipients. But they recommended a series of improvements in reviewing Medicaid claims and strengthening internal controls to ensure the claims are accurately submitted by providers.

In response to the audit, state health officials said they didn't know how Medicaid should pay claims containing the billing code error and said they were reviewing their policies to prevent similar errors in the future.

State officials said they are in the process of recovering overpayments and have so far have voided or adjusted 17 of the erroneous claims resulting in $861,296 in Medicaid savings and are working to resolve the remaining claims.

The report comes as New York braces for cuts to Medicaid funding from President Donald Trump's One Big Beautiful Bill Act, which also sets new restrictions and work requirements for some recipients.

Gov. Kathy Hochul said the new law will cut $6 billion in federal funding from the state’s Medicaid program, resulting in more than 1.5 million New Yorkers losing health care coverage under those programs and increased costs for everyone.

The cuts would include about $2.5 billion in lost federal funding and $500 million in new state administrative costs, according to the Hochul administration. They also say it would result in more than $3 billion in losses for hospitals across the state.

Older

Colorado legislature Polis’ Medicaid cuts, Pinnacol spin-off get cold reception

Newer

What are the GOP's plans to reform health care?

Advisor News

  • Semi-retirement: helping clients balance flexibility with financial security
  • The 6X Formula for leveraging content marketing with AI
  • When a home becomes difficult to insure, the plan changes
  • The inheritance gap: Helping clients plan for money that hasn’t arrived
  • After the midterms: Addressing your clients’ tax concerns
More Advisor News

Annuity News

  • Athene CEO criticizes offshore reinsurance, risk-taking by competitors
  • DOL, trade groups, state AGs file briefs supporting Alcoa in PRT lawsuit
  • John Hancock launches new fixed indexed annuity suite
  • Annuities to play a larger role in workplace retirement plans
  • FHLBank Pittsburgh Announces Results in 2026 Board Election
More Annuity News

Life Insurance News

  • AM Best Affirms Credit Ratings of Fubon Insurance Vietnam Co., Ltd.
  • Three lawsuits put life insurers’ cost-of-insurance practices under scrutiny
  • Military Briefs: November 12-18
  • Security Benefit Series B Preferred Stock Dividend Rate Resets to 10.286%
  • FHLBank Pittsburgh Announces Results in 2026 Board Election
More Life Insurance News

Property and Casualty News

  • AAA decreases auto insurance rates for Florida policyholders
  • AM Best Revises Outlooks to Stable for Hagerty Reinsurance Limited and Drivers Edge Insurance Company
  • Weather disasters take a bigger bite out of nation’s economies
  • Kingstone Companies Inc. (NASDAQ: KINS) Touches New 52-Week High Friday Morning
  • Oklahoma Insurance Department secures more than $45M in State Farm settlement
More Property and Casualty News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Insurvoice Lets Independent Insurance Agency Owners Analyze Every Customer Call in ChatGPT or Claude
  • Spectrum Weather & Specialty Insurance Celebrates 15 Years and Welcomes the Next Generation
  • Royal Neighbors of America® Increases Service Capacity
  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.