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Medicaid Overpays 23% ($62M) For Its Diapers

From the Washington Free Beacon:

Medicaid Overpays Millions for Diapers

By Lachlan Markay | January 27, 2014

A lack of competitive bidding processes among state Medicaid agencies caused the program to overpay for diapers by about $62 million in 2012, according to a report released by federal auditors on Monday.

Only five state Medicaid agencies have implemented competitive bidding programs for “disposable incontinence supplies,” according to the inspector general for the department of Health and Human Services. Those states reported saving up to of 50 percent on those supplies, the IG report found.

States nationwide implemented cost control mechanisms, the report noted, but Medicaid could have saved about $62 million if competitive bidding processes were adopted nationwide.

Those savings would amount to 23 percent of the Medicaid bill for disposable incontinence supplies, which include nine categories of diapers and liners, including products for adults and children.

$62 million dollars squandered on diapers might seem like small (ahem) potatoes. But, as the article points out, that is almost one quarter of what Medicaid spends on diapers.

Also, bear in mind that, thanks to Obama-Care, more and more healthcare spending will be directed from the White House. And just look at what a great job the state governments are doing with Medicaid costs.

Medicaid requires the coverage of home health services used by patients who qualify for nursing care. That requirement includes coverage for diapers, which accounted for $266 million in Medicaid spending in 2012…

By the way, this $62 million dollar figure doesn’t even count the run of the mill Medicaid fraud involving diapers:

The IG released its report less than a week after the Justice Department charged the husband-and-wife owners of a Texas medical practice with fraudulently claiming more than $2 million in Medicaid expenses for incontinence supplies. Each faces a 10-year prison sentence and a $250,000 fine if convicted.

The owner of a Maryland medical equipment company pled guilty in April to a charge of federal healthcare fraud after submitting false Medicaid reimbursement claims for $212,893 in incontinence supplies…

Six states—California, Illinois, New York, North Carolina, Pennsylvania, and Virginia—account for more than half of the potential savings that could be achieved by implementing competitive bidding practices, the IG found. California alone could save $7.5 million per year on diapers, the report noted.

And if this kind of waste and fraud is happening in diapers, it is undoubtedly happening in everything Medicaid touches.

This article was posted by Steve Gilbert on Tuesday, January 28th, 2014. Comments are currently closed.

3 Responses to “Medicaid Overpays 23% ($62M) For Its Diapers”

  1. It must be fun to spend someone else’s money .. and without consequence or conscience ..

  2. Right of the People

    Obama and his minions are like a diaper, full of crap and on your ass all the time.

  3. canary

    I was reading about some of cuts for the elderly on Medicare, and there were a lot of pages, but sure enough physical therapy under rehabilitation cuts is for real. They don’t want old people getting better.

    It’s all so loosely written that it could mean they are not even entitled to surgery in order to get better. After all, we all heard the story about how the white grandma had hip surgery just to die soon after.

    It’s just I heard all these old people being called and told Medicare would no longer pay their physical therapy and they’d have to pay out of pocket. I gave up on reading all the cuts.

    It felt surreal since Pelosi said her donut hole would change in a good way.




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