Audit reveals at least $56 million in improper Indiana Medicaid payments
Dec 20, 2024
(WXIN/WTTV) — Indiana leaders are calling for "urgent" reforms after a federal audit revealed the state has made at least $56 million in improper Medicaid payments for Hoosiers with autism.
A recently published audit from the U.S. Office of the Inspector General is aptly titled "Indiana Made at Least $56 Million in Improper Fee-for-Service Medicaid Payments." The 45-page report explains how many of Indiana's Applied Behavioral Analysis (ABA) payments over the last several years did not comply with State or Federal guidelines.
From 2017 to 2020, Indiana's Medicaid spending on ABA therapy reportedly grew from $14 million to $102 million - the second-highest rate in the country.
While the report concluded that $56.5 million of Medicaid money was spent on improper payments, investigators say another $76.7 million was used for "potentially improper" payments. Auditors say a large chunk of these payments - $39.4 million - was provided by the federal government.
Specifically, the audit states that these payments were being made to families of children with autism for ABA treatments. However, the payments were seemingly going unchecked - resulting in the loss of millions in taxpayer dollars.
The audit details several significant issues with the payments being made, including:
Incomplete documentation,
Lack of evidence for services provided,
Billing for non-therapy time,
Uncredentialed providers, and
Services without proper referrals.
Newly appointed Indiana Senate Minority Leader Shelli Yoder (D-Bloomington) is now calling for urgent reforms.
An incoming ranking minority member of the Health and Provider Services Committee, Yoder said Indiana leaders need to be held accountable and ensure critical resources are being used properly.
"When Medicaid payments go unchecked, it’s the families who rely on these services that suffer the most," Yoder said. "Every wasted dollar represents a missed opportunity to deliver the care that Indiana children deserve."
Yoder went on to say that the findings are a wake-up call for the State's healthcare system.
NEXT: Taylor ousted as Senate Minority Leader; Shelli Yoder to replace him
"This is about more than dollars and cents," she said. "It’s about creating a system that works for the families it was designed to support. We cannot allow gaps in oversight to jeopardize the well-being of our most vulnerable residents."
Yoder said in a statement Friday that she is now calling on the Family and Social Services Administration (FSSA) to act swiftly and recover improper payments, improve training and ensure accountability that payments are legit.
As for the Inspector General's audit, it states the Federal government is now asking Indiana to repay $39.4 million and make significant changes to improve Medicaid documentation of ABA services.
Shortly after the audit was published, Indiana Medicaid Director Cora Steinmetz announced she will resign in early 2025. Steinmetz has been in the position since Aug. 2023.
To read a full copy of the audit, click here.