Audit: Illinois Overdrew Federal Medicaid Dollars

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By Associated Press

CHICAGO (AP) - Federal auditors have found that Illinois used faulty methods for withdrawing federal Medicaid money, resulting in overdraws the state later had trouble repaying.

The U.S. Department of Health and Human Services' Office of Inspector General released the report Monday.

The report says Illinois created "a perpetual 'treadmill effect'" as it continued to overdraw and repay later.

The state's withdrawals exceeded its spending by an average of $60 million per quarter during the three years reviewed by the auditors. The report says the federal government may have lost as much as $792,000 in interest because the state repaid the money two to six months later.

Illinois Department of Healthcare and Family Services Director Julie Hamos said in a response to the audit that her department is addressing the problem.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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