Audit: Louisiana Medicaid paid $9.6M for coverage after beneficiaries' deaths

By Nolan McKendry | The Center Square

The Louisiana Department of Health paid roughly $9.6 million in monthly premiums for more than 1,000 Medicaid beneficiaries after their deaths between February 2019 and March 2025, according to a new progress report from the state auditor.

The analysis found 1,072 deceased beneficiaries continued to be listed as eligible for Medicaid, triggering fixed per-member, per-month payments to Managed Care Organizations despite receiving no services after their date of death.

This means the state kept paying insurance companies for people who had already died.

Nearly half of these cases – 511 beneficiaries – were identified through obituary records, while 210 were caught through the department's records data.

The median delay between death and the last payment ranged from just 23.5 days when identified through the department's records to more than 799 days when found through the federal Social Security Administration Death Master File.

"LDH could identify additional deceased Medicaid beneficiaries if it included additional third-party data sources such as obituaries, the Social Security Administration's Death Master File, and other states' Vital Records databases," the audit states.

Auditors noted that 68% of the cases – representing nearly $7.7 million – were uncovered using sources the department does not currently include in its eligibility checks.

The report follows a 2017 audit that also flagged improper payments for deceased Medicaid recipients. The Health Department's eligibility manual requires that deaths be reported within 10 days, but current verification methods rely primarily on Louisiana's vital records.

In a July 30 letter responding to the findings, the department said it "concurs with the recommendation" to expand its data checks.

"LDH is in the process of working with the U.S. Department of Treasury to gain the necessary approvals to receive the Social Security Administration Death Master File," the department wrote, adding it will incorporate the file as a third-party source once obtained.

According to the agency, about $4 million in improper payments flagged in the audit will be withheld from managed care organizations during its next monthly payment cycle.