Audit: Illinois Overdrew Federal Medicaid Dollars

Aug 18, 2014

Federal auditors have found that Illinois used faulty methods
for withdrawing federal Medicaid money, resulting in overdraws the state later
had trouble repaying.
The U.S. Department of Health and Human Services' Office of Inspector General
released the report Monday.
The report says Illinois created ``a perpetual `treadmill effect''' as it
continued to overdraw and repay later.
The state's withdrawals exceeded its spending by an average of $60 million per
quarter during the three years reviewed by the auditors. The report says the
federal government may have lost as much as $792,000 in interest because the
state repaid the money two to six months later.
Illinois Department of Healthcare and Family Services Director Julie Hamos said
in a response to the audit that her department is addressing the problem.