NY to Appeal Medicaid Demand to Return $1.25B

ALBANY (AP) -

The New York Health Department says it will appeal a federal claim for the return of more than $1.25 billion in Medicaid funds, saying federal authorities previously approved that funding and the clawback could hurt the state’s health care system.

The Centers for Medicare and Medicaid Services issued the “disallowance” last week, along with an audit report saying New York was overpaid another $200 million that should be refunded.

The $1.25 billion claim stems from the care for the developmentally disabled in large institutions, which are being phased out.

The state’s Medicaid spending for 5.8 million low-income New Yorkers’ health care was $55.6 billion last year, half reimbursed by the federal government.