Florida Senate Creates Select Committee to Investigate Medicaid Fraud

The Florida Senate on Jan. 2 created a select subcommittee that will investigate why the state is losing millions of dollars to Medicaid fraud, the St. Petersburg Times reports. The select committee -- which convenes for a set time and for a special purpose -- will hold two hearings later this month and complete its work within 30 days (Hauserman, St. Petersburg Times, 1/3). An audit released last September by the Florida Legislature's Office of Program Policy Analysis and Government Accountability concluded that the Agency for Health Care Administration, which runs the state's Medicaid program, recovered only $96.7 million of the estimated $2.1 billion to $4.3 billion lost to fraud and abuse over the past six years. The report also found that AHCA imposed fines in less than 10% of cases where providers were determined to have overbilled the state (Kaiser Daily Health Policy Report, 9/18/01). The Times reports that senators on the panel are seeking an explanation from AHCA officials. "We have serious budget problems, and we need to do everything we can to recoup those monies which are, in effect, stolen. I don't believe that AHCA is doing everything they can to recoup those dollars, and I'm going to find out why that is," Sen. Burt Saunders (R) said. While it is not unusual for lawmakers to ask officials from state agencies to testify, the Times reports the Senate's announcement of the committee creation was "particularly harsh," as it stated that AHCA "has failed to do all that it should to enforce Florida's Medicaid anti-fraud laws." The state currently has a budget deficit exceeding $1 billion. Judy Hefren, the agency's deputy inspector general, said, "I don't think there's any reason to believe the agency has failed to do what we should have" (St. Petersburg Times, 1/3).