La. sues Medicaid drug payment overseer

http://theadvocate.com/news/business/9579038-123/la-sues-medicaid-drug-payment

From the article:

Louisiana’s Medicaid program has paid “grossly excessive amounts” for prescription drugs for more than 20 years because of the Fortune 500 company that oversees those payments, a lawsuit filed Thursday by the state Attorney General’s Office claims.

Molina Healthcare Inc. and subsidiary Molina Information Systems LLC engaged in “negligent, false, misleading, unfair, and deceptive acts and practices” in processing Medicaid reimbursements for prescription drugs, the lawsuit says. Louisiana spent $974 million on those drugs in the past year, and the exponential increase in drug expenses in recent years has contributed to Louisiana’s health care funding crisis, the state claims.

The lawsuit includes 16 examples of the drugs for which the state grossly overpaid. One reimbursement was supposed to be $38.87, but the state paid $413.33. Only two of the overpayment examples were less than $10.

Anyone want to put money.. on the fact.. that the bureaucrat(s) that oversaw this program.. suffer no consequences..  like losing their job or going to jail.. Is it just me being skeptical.. but.. such a long time “overpayment” would suggest that someone within the bureaucracy was “getting their palm greased ” ?  More southern “good ole boys’ club” ?

Filed under: General Problems