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California Owes $1.4 Billion for Improper Medicaid Payments (Corrected)

May 19, 2020, 8:38 PMUpdated: May 27, 2020, 8:31 PM

California must pay back $1.4 billion to the federal government for using ineligible dollars for state-run immigrant health-care programs, according to the state’s health-care department.

The state used federal money to supplement Medi-Cal—its Medicaid program—for immigrant services beyond the allowed federal parameters, an official from the California Department of Health Care Services confirmed Tuesday.

In updating the department’s 2020-2021 budget proposal, staffers found a “claiming issue” for state-only programs in which they “were inappropriately drawing down federal funds for services not eligible,” Jacey Cooper, chief deputy director of the department, said at a California Assembly hearing Tuesday.

The funds...

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