Two MS millionaires among those receiving fraudulent Medicaid benefits, auditor says
Two Mississippi millionaires are among those who have fraudulently received state Medicaid benefits for low-income residents and those with qualified disabilities, State Auditor Shad White announced Monday.
The auditor’s office discovered the misspent money during an annual audit of federal money funneled through state agencies in Mississippi.
White’s office released the report Monday.
“The use of these returns to figure out if people are lying to obtain benefits started last year in my office,” White said. “We now have enough data to show there are millions of dollars of potential savings if we can prevent ineligible people from getting on Medicaid. The benefits should only be going to those who deserve to be on the program.”
In Mississippi, Medicaid accounts for 49% of the federal dollars spent in the state.
The state auditor’s office compared the income Medicaid recipients reported to their annual state income tax returns to uncover the alleged fraud. Those cases have been referred to federal authorities for a criminal investigation, White said, and his office is assisting.
The audit focused on a sampling of 180 Medicaid beneficiaries and found about 5% of those receiving the benefits were ineligible for the funds.
The state’s division of Medicaid, however, does not have legal authority to access to state income tax returns like the state auditor’s office does. White wants that to change.
“Under current law, Medicaid cannot do the analysis we did here,” White said. “I stand ready to work with Medicaid’s leadership to argue to lawmakers that they should have this tool in their toolbox. It could stop ineligible applicants from being put on the program in the first place.”
Under current policies, the state’s Medicaid division doesn’t have the authority to do the type of research to potentially stop the state from “handing out millions to ineligible people,” White said.
White wants new legislation passed to give Mississippi Medicaid the authority to compare income reported to Medicaid to that reported in state income tax returns.
Medicaid recipients in Mississippi must have certain disabilities or be 65 or older in low-income households.
Anyone who is pregnant, blind or is responsible for a child under the age of 18 whose annual income before taxes is below the following amounts based on the number of residents per home are:
- $17,131 for a household of 1
- $23,169 for a household of 2
- $29,207 for a household of 3
- $35,245 for a household of 4
- $41,284 for a household of 5
- $47,322 for a house of 6
This story was originally published August 2, 2021 at 12:41 PM.