Hawaii’s Medicaid fraud enforcement unit lost nearly $3 million in annual federal funding after investigators found it ineffective, with most of its claimed recoveries coming from a single decade-old case.
- Federal inspectors pulled funding from Hawaii’s Medicaid Fraud Control Unit citing ineffectiveness and zero fraud convictions in four years.
- The state claimed $14 million in fraud recoveries, but $13 million came from one dialysis company case that started in the 2010s.
- Vice President JD Vance criticized Hawaii for giving fraudsters ‘free rein’ in the Medicaid system.
- The funding loss could impact Hawaii’s entire medical insurance program for low-income residents.
- Federal inspector called the state’s enforcement efforts inadequate in a strongly worded decertification letter.
Source: Civil Beat
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