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A multistate audit from the U.S. Department of Health and Human Services found Minnesota made $3.7 million in payments over a two year period for deceased enrollees in state health care programs.

The federal audit, sent to Minnesota’s Department of Human Service this week, said the payments occurred because a new computer system set up to comply with federal eligibility requirements didn’t have the most up-to-date information about people enrolled in state programs, including those who had died.

The state started fixing the issue before the audit, and the $3.7 million in “unallowable” payments were a fraction of the $15 billion in proper payments made during that time, according to a release from DHS.

“Ensuring our records are up-to-date so we do not pay for individuals who are no longer receiving care is a continual challenge,” DHS Commissioner Jodi Harpstead said in the statement. “We gather death information from many different sources, which do not always report in a timely manner.”

But news of the payments comes after months of issues within the massive state agency, including the sudden resignation of top leaders, including former Commissioner Tony Lourey, and discovery of millions in overpayments to two tribes for substance abuse treatments going back more than five years.

“This is just another example of the problems that have taken place within the Department of Human Services,” said state Rep. Joe Schomacker, R-Luverne, Republican lead on the Minnesota House Health and Human Services Finance Committee. “While this issue is now behind us, it highlights the need for us to continue to investigate what is happening within the agency,” he said in a statement.

Senate Republicans have been holding a series of hearings on the issues. Harpstead, who took over the agency in September, is in the midst of a 90-day plan to reorganize and stabilize the department.

Politics and Government News

Briana Bierschbach

Author

The state says its already started fixing a computer system that led to the payments to deceased individuals enrolled in state health care programs.

The Minnesota Department of Human Services

Audit: State paid $3.7 million for health care to people who had died

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