But the department’s Office of Inspector General said it expects a new provision in Republicans’ One Big Beautiful Bill requiring states to audit their Medicaid beneficiary lists may help reduce these improper payments in the future.
These kinds of improper payments are “not unique to one state, and the issue continues to be persistent,” Aner Sanchez, assistant regional inspector general in the Office of Audit Services told The Associated Press. Sanchez has been researching this issue for a decade.
Sharing the Full Death Master File data has been tightly restricted due to privacy laws which protect against identity theft and fraud.
The massive tax and spending bill that was signed into law by President Donald Trump this summer expands how the Full Death Master File can be used by mandating Medicaid agencies to quarterly audit their provider and beneficiary lists against the file, beginning in 2027. The intent is to stop payments to dead people and improve accuracy.
Tuesday’s report is the first nationwide look at improper Medicaid payments. Since 2016, HHS’ inspector general has conducted 18 audits on a selection of state programs and had identified that Medicaid agencies had improperly made managed care payments on behalf of deceased enrollees totaling approximately $289 million.
