Payment error costs DHHS $66M
A payment system error has led the state Department of Health and Human Services to overpay hospitals by $66 million since September.
DHHS Commissioner Mary Mayhew yesterday said the overpayments were a result of an improper switchover to a new claims processing system last September, and that the department is on pace to overpay hospitals by $119 million by the end of the fiscal year in June, according to a press release. Beginning March 19, the department will stop certain types of payments until the problem is resolved, and informed hospitals of the errors in a letter yesterday. If payments to a hospital exceed its budgeted amount, the settlement payments authorized by the supplemental budget enacted earlier in the year will be adjusted, according to the release. The supplemental budget included language to help hospitals receive nearly $250 million in Medicaid reimbursements from state and federal funds.
Mayhew also announced that two other issues could further complicate the department's budget. Payments made to MaineCare providers have jumped by $10 million over the last six weeks, which could result in MaineCare exceeding its budget by $30 million or more. A U.S. District Court this month also ruled that the state overcharged the federal government for Medicaid reimbursements and must repay the $30 million.
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