Flaws in processes and use of data are significantly hindering recoupment of Medicaid overpayments under the Medicaid Integrity Contractor Audit program, according to a new report from the Department of Health and Human Services’ Office of Inspector General.

The 370 audits were assigned between January and June 2010 with an estimated $80 million in potential overpayments, but the 11 audits revealing overpayments only yielded a total of $6.7 million. By June 2011, most of the rest of remaining audits were completed with no finding of overpayment, or ongoing but unlikely to identify overpayments.

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