States faulted on Medicaid methods (fed $$ going to states' "consultants")

[rainbow4321]

http://interestalert.com/brand/siteia.shtml?Story=st/sn/06280000aaa0687e.upi&Sys=siteia&Fid=BUSINESS&Type=News&Filter=Business

A U.S. Congressional report says two-thirds of the states hire consultants who sometimes use "questionable billing practices" to get more Medicaid funds.

The report by the Government Accountability Office says these consultants are then rewarded with a share of the money as a contingency fee, the New York Times reported Tuesday.

The report sent to Congress says these consultants are driving up Medicaid costs by recommending financial tactics that violate federal law or policy, the Times said.

"As of 2004, 34 states -- up from 10 states in 2002 -- used contingency-fee consultants for this purpose," said Kathryn G. Allen, director of healthcare issues at the auditing agency. Allen also blamed the federal government for a lack of oversight and clear guidance to the states.