Lankford: Proper Oversight Working to Address Medicaid Overpayments

Press Release

Representative James Lankford (R-OK), Chairman of the House Oversight Committee's Subcommittee on Energy Policy, Health Care and Entitlements today held a hearing on the progress of Centers for Medicare and Medicaid Services (CMS) efforts to address and prevent improper state Medicaid payments, which have already cost billions in wasted taxpayer dollars.

Throughout the 112th and 113th Congresses, the House Oversight Committee assessed that Medicaid programs in Texas were spending more on kids' braces than all the other state's Medicaid programs combined. The Committee learned CMS approved Medicaid managed-care rates in Minnesota well in excess of actuarially appropriate amounts. New York's state-operated developmental centers rose to more than $5,000 per patient per day, an amount ten times higher than rates received by similar private facilities in New York. In 2012, taxpayers paid nearly $2.5 billion for about 1,300 patients residing in these facilities.

"CMS overpayments are yet another example of federal waste. But proper congressional oversight is working to effectuate change in the agency on behalf of low-income families whose access to healthcare options is impacted by CMS's previous failure to address overpayments in a timely manner," said Lankford.

"I appreciate today's witness testimony, including the Government Accountability Office (GAO) presentation of findings regarding problems with state Medicaid programs. Unfortunately, this problem is likely to get much worse with Obamacare's Medicaid expansion. Today's hearing shed much needed light on the increasingly undeniable issue that Medicaid program financing and needs fundamental reform, not a blanket expansion.

"We will continue to seek answers regarding CMS's failure to detect Medicaid fraud. We will press CMS for a plan to take action on the GAO and IG findings presented today, and we will follow up on the steps CMS will take to monitor state financing and payment schemes during Obamacare's Medicaid expansion. I look forward to continued cooperation from CMS, GAO and state and local governments to address the systemic problems impacting healthcare services for vulnerable, low-income American families," concluded Lankford.

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