New legislation aims to curb Medicaid overpayments for deceased recipients.
A federal watchdog report released Tuesday found more than $207 million in Medicaid managed‑care payments for deceased enrollees between July 2021 and July 2022. The estimate highlights gaps in provider verification.
The Office of Inspector General said the improper payments occur nationwide, not in a single state, and that the problem has persisted for at least a decade. Deputy inspector general Aner Sanchez confirms its persistence.
The report recommends sharing additional state data, especially the Social Security Administration’s Full Death Master File, which contains over 142 million records from 1899. The file is protected by privacy laws.
A tax‑spending bill signed by President Trump this summer mandates quarterly Medicaid audits against the file beginning in 2027 to curb payments to deceased beneficiaries. The audit requirement will be enforced by state Medicaid offices.
Earlier this year, Treasury recovered more than $31 million of incorrect federal payments through a pilot using temporary access to the file; the Social Security Administration has also amended the database, classifying thousands of living immigrants as deceased. The changes aim to improve payment accuracy and reduce fraud.