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Medicaid’s $207M Error on Deceased Payments

A Department of Health and Human Services report reveals Medicaid improperly paid over $207 million to healthcare providers for deceased individuals between 2021 and 2022. The Trump administration’s recent legislation mandates states to audit Medicaid beneficiary lists against the Full Death Master File quarterly, starting in 2027, to curb such errors. This initiative follows a successful Treasury pilot program that recovered $31 million in improper payments. However, the Social Security Administration’s updates to the death file, including misclassifying living immigrants, complicate its use.