A federal report shows that the state of New York overcharged the federal government $320 million for Medicaid services back in 2010. The report by the Health and Human Service Department inspector general focused on the cost of rehabilitation services. Residences operated by the state billed the federal government at twice the rate that they should have been billing. The report comes after discovering last year that New York had overcharged the federal Medicaid program by $701 million in 2009. Both reports found that state officials had billed the federal government for services using formulas not based on actual costs, leading to the inflated bills. Officials for the state health department say they have taken actions to address the issues raised in the audit.
