North Carolina Repaying Feds $300 Million For Medicaid Error

The state of North Carolina will repay the federal government about $300 million overdrawn by Medicaid officials because of a billing error.

State Health and Human Services Secretary Lanier Cansler said Friday the state will be able to pay $200 million of it back immediately with the rest in the months ahead.

Cansler said the repayment won't affect the state budget situation or treatment to patients.

The problem began last November when employees made changes to the rate the federal government pays for Medicaid. It caused more
public hospital payments to be billed to the wrong account.

Cansler said the mistake was reported to him last week but should have been caught earlier. He said internal controls are being improved.

(Copyright 2009 by The Associated Press. All Rights Reserved.)


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