Medicaid Accidentally Overpays $88M to Alabama

The state of Alabama received bonus payments from Medicaid for 2009 and 2010 that were a stunning 13 times higher than the state was eligible for. So says the inspector general (IG) for Health and Human Services in a report released on Wednesday.

Instead of $7.1 million, Alabama received $95.3 million in performance bonuses related to the Children’s Health Insurance Plan (CHIP) for the years in question. As a consequence, the state now owes the federal government a refund of about $88 million.