New York State Comptroller Thomas DiNapoli says an audit shows the State Health Department overpaid Managed Care Organizations by nearly $19 million in the 2014-2015 fiscal year, partly because of a flaw in the way it calculates premiums.
DiNapoli’s staff says the state could overpay by nearly $57 million over the next three years if they don’t fix the problem.
The state moved over the last several years to get most Medicaid recipients into managed health care plans to save money, but the comptroller says it’s missing out of millions it should be saving through those reforms.
DiNapoli says his audit found the Health Department had miscalculated the tax burden on the for-profit MCOs, causing them to be overpaid.