The federal government's decision to withhold payment of $175 million for a state mental health program because of concerns that the state had been paying improper claims is a good deal more serious than the governor's senior adviser described it.
Dan Gerlach, Gov. Mike Easley's senior policy adviser, called it a "a cash-flow issue" after The News & Observer found out about the deferral last month and began asking questions, Pat Stith reports.
"They're not saying, 'We're not going to pay,'" Gerlach said. "They're just saying, 'We need some questions answered about this.'"
But eight days later, Dempsey Benton, secretary of the Department of Health and Human Services, was singing a different song. In a letter to the federal Centers for Medicare & Medicaid Services, Benton said "a deferral of this magnitude is financially disastrous to the citizens of NC and any additional deferment threatens the sustainability of the entire N.C. Medicaid program."
Benton said his letter was "our first step in offering clarification" leading to release of the money.
"We are confident that we have effectively managed this program such that there is no unusual risk for abuse present today as mentioned in the deferral letter," Benton wrote.
More after the jump.
—————
The N&O reported in February that government audits indicated the state had wasted at least $400 million in 16 months by paying claims for skill-building community support services that were medically unnecessary.
In response to Benton's letter, the CMS regional office in Atlanta said it would begin a review of community support claims June 2.
Blog RSS feed
