State auditor finds $800 million in waste in Ky. Medicaid probe - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
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
Newswires RSS Get our newsletter
Order Prints
September 19, 2025 Newswires
Share
Share
Post
Email

State auditor finds $800 million in waste in Ky. Medicaid probe

TOM LATEK | Kentucky TodayPaducah Sun

FRANKFORT — A special examination of the Kentucky Department of Medicaid Services (DMS) released by State Auditor Allison Ball says a specific failure on the part of DMS led to more than $800 million of wasted taxpayer money.

The report released Wednesday found that DMS did not take basic steps to ensure it was not duplicating payments made by other states once a recipient moved out of Kentucky and enrolled in another state's Medicaid program. All states must check for and investigate alerts from the federal government warning that double (or more) payments are occurring, but DMS failed to do so. This failure led to about $800 million worth of unnecessary capitation payments to MCOs across four years (from January 1, 2019, to December 31, 2022).

"This exam uncovered about $800 million of taxpayer dollars erroneously paid without benefiting Medicaid recipients," Ball said. "Medicaid is one of Kentucky's costliest programs, and it's essential that we make sure every Medicaid dollar spent is going directly to benefit Kentuckians in need of services, not being wasted due to bureaucratic negligence."

The special examination reviewed a specific issue within Kentucky's Medicaid program involving payments made to managed care organizations (MCOs) that act on behalf of DMS to pay for Medicaid recipients' covered services. DMS pays MCOs "capitation payments," which are somewhat similar to the premiums paid by privately insured individuals to their health insurance providers.

This is the latest in a series of Kentucky Medicaid issues uncovered by the Auditor. These include: 1) the failure to ensure ineligible noncitizens did not receive Medicaid benefits, 2) the failure to prevent the same Social Security Number from being used by multiple Medicaid claimants, and 3) the failure to complete inspections of over 100 long-term care facilities in Kentucky, some of which were last visited in 2019.

The full report Ball's office released Wednesday can be found online at https://tinyurl.com/3b9m5zt5.

Older

Biden offered health insurance access to DACA immigrants. Trump took it away.

Newer

Medicaid work requirements delayed until 2027 following federal action

Advisor News

  • Worker retirement confidence dips to lowest level in a decade
  • What’s behind private equity investment in insurance brokerages
  • Advisors get a win as NJ Senate passes independent contractor bill
  • Why federal retirement benefits are more complex than advisors realize
  • Why timing the market is still a retirement mistake and what to do instead
More Advisor News

Annuity News

  • Best’s Special Report: U.S. Life/Annuity Industry Sees Bottom-Line Growth Despite 18% Decline in Total Income in First-Quarter 2026
  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • Fortitude Re Completes $500 Million FABN Issuance
  • Reframing retirement income for greater certainty
  • Jackson Introduces Dow Jones Industrial Average Index Option, Flexible Premiums, Six-Year Rate Guarantee in Latest Registered Index-Linked Annuity Launch
More Annuity News

Health/Employee Benefits News

  • Hicks Thomas Continues Managed Care Growth with Addition of Veteran Trial Lawyer Mitch Reid
  • Wyoming lawmakers mull solutions to rising healthcare costs
  • Minnesota health insurers seek double-digit rate increases for 2027
  • Outsider Zach Lahn couldn’t stop Montana Medicaid expansion
  • California is getting ready to increase a health insurance tax. Will it affect your premium?
More Health/Employee Benefits News

Life Insurance News

  • Earl Dudley Jr. to Become Chief Human Resources Officer at Mutual of Omaha
  • How accelerated underwriting is transforming life insurance
  • OVER $107 MILLION IN LIFE INSURANCE BENEFITS LOCATED FOR TENNESSEANS IN 2025 THROUGH NAIC'S LIFE INSURANCE POLICY LOCATOR SERVICE
  • Maryland Heights man pleads guilty in murder-for-hire death of his mom
  • AM Best Affirms Credit Ratings of Everlake Life Group Members
More Life Insurance News

NEWS INSIDE

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

FEATURED OFFERS

Maximize Your FIA Case Results
Learn a repeatable process to review, reposition, and present FIA opportunities with confidence.

Aim higher during Annuity Awareness Month
Raise the bar with our diverse portfolio of Ascend annuities, backed by superior financial strength

You Could Be Losing Up to 20% of Your Commissions
GreenWave helps you find, fix, and prevent commission errors.

True Independence Means Having Choices
Cambridge offers flexibility, stability, proven tools—no private equity strings attached.

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

Looking for stronger rates, amplified growth & real results?
Sentinel's Accumulation Protector Plus℠ Annuity is for clients wanting more from retirement planning

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
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.
Insurance News | InsuranceNewsNet