Wednesday, June 30, 2010

Michigan $5 Billion Dollar Health Fraud

Here we have the latest piece of evidence, almost $5 billion, that Michigan's Medicaid Fraud Control Unit does not do jack shit. Top that off with Candidate for Michigan State Representative Shanelle Jackson (incumbent) prancing around claiming Detroit needs more mental health money for the so-called mental health authorities that are buying her off, and you get audit reports such as this.

There was severe strain between Bernard Kilpatrick and Ficano with both accusing the other of caring more about control of the agency and its contracts than about care for the mentally ill.

Tensions became further strained after the county sought to depose Kilpatrick under oath in its lawsuit seeking to recover funding from a more than $20 million contract given to Jon Rutherford, the operator of a homeless shelter who has been indicted for income tax evasion.

Michigan Auditor General audited 11 programs as major programs and reported known questioned costs of $489.0 million and known and likely questioned costs totaling $4.4 billion. Known and likely questioned costs were based on documentation provided to us by DCH during our audit fieldwork. However, it is possible that DCH could obtain

We identified instances of noncompliance that are required to be reported in accordance with U.S. Office of Management and Budget (OMB) Circular A-133 (Findings 6 through 27, 29, and 31 through 35).

Adverse opinion was issued for the Medicaid program as Department of Community Health's internal controls over the program did not ensure compliance with federal law and regulations regarding reporting.

I normally post the actual audit, but since the state has started locking its reports, that is not going to happen for some time, so here is the direct link.

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