Imagine a scenario where millions of dollars are being paid to people who can't even receive them - because they're no longer with us. That's the shocking reality uncovered by a recent watchdog report, which found that Medicaid, a vital healthcare program, paid out over $207 million to deceased individuals in just one year.
But here's where it gets controversial...
The report, issued by the Department of Health and Human Services' independent watchdog, reveals a persistent issue with improper payments. Aner Sanchez, a deputy regional inspector general, has been investigating this problem for a decade and confirms that it's not limited to any specific state.
Between July 2021 and July 2022, more than $207.5 million in managed care payments were made on behalf of enrollees who had passed away. The report recommends sharing a comprehensive database, known as the Full Death Master File, with state governments to recover these incorrect payments. This database, containing over 142 million records dating back to 1899, could be a game-changer in preventing such errors.
However, there's a catch. Sharing this data has been restricted due to privacy laws, designed to protect against identity theft and fraud. But with a new provision in the One Big Beautiful Bill, signed into law by President Trump, things might change. This bill mandates Medicaid agencies to conduct quarterly audits of their provider and beneficiary lists against the Full Death Master File, starting in 2027.
And this is the part most people miss...
The government has already had some success with this approach. Earlier this year, the Treasury Department recovered over $31 million in federal payments that were mistakenly made to deceased individuals. This was achieved through a pilot program that gave the Treasury temporary access to the Full Death Master File.
But there are still challenges. The Social Security Administration (SSA) has been making unusual updates to the file, adding and removing records, which complicates its use. For instance, the Trump administration classified thousands of living immigrants as dead, canceling their Social Security numbers, in an attempt to crack down on immigrants temporarily allowed to stay in the U.S. under Biden-era programs.
So, while there's hope that these improper payments can be reduced, the path forward is not without its obstacles.
What do you think? Should privacy laws be adjusted to allow for more effective use of the Full Death Master File? Or are there other solutions to this persistent issue? We'd love to hear your thoughts in the comments below!
