News Summary
A recent audit reveals that the Louisiana Department of Health overpaid nearly $10 million for Medicaid beneficiaries who had passed away over the past six years. The audit, conducted by state Legislative Auditor Mike Waguespack, uncovered significant inefficiencies in data handling and eligibility verification processes. With thousands of deceased beneficiaries identified, the audit calls attention to the need for improved data management and has prompted the department to take corrective actions, including potential fund recovery. The findings emphasize the importance of maintaining accurate records in Medicaid operations.
Baton Rouge, Louisiana – A recent state audit has revealed that the Louisiana Department of Health (LDH) paid nearly $10 million to insurance companies for Medicaid beneficiaries who had already passed away over the course of the last six years. Conducted by state Legislative Auditor Mike Waguespack, the review highlights serious inefficiencies regarding the state’s handling of Medicaid beneficiary information from February 2019 to March 2025.
During this timeframe, LDH made approximately $9.6 million in payments for 1,072 deceased beneficiaries. The audit confirmed that none of these individuals had any claims for services after their respective dates of death, indicating widespread oversights in record-keeping and beneficiary eligibility verification.
Auditors employed a variety of methods to identify deceased beneficiaries, uncovering 511 names via obituaries, 210 through Louisiana vital records, and 168 from the Social Security Administration’s Death Master File. Others were identified through a combination of various records. The findings of the audit were part of a larger effort aligned with the governor’s Fiscal Responsibility Program, known as LA DOGE.
Issues Identified in Medicaid Management
Despite the success of LDH in verifying most deaths, the audit suggested that even more deceased beneficiaries could have been identified using additional third-party data sources, such as comprehensive obituary databases and other vital records. The audit uncovered an average of 174 missed deaths per year, occurring during the terms of both former Democratic Governor John Bel Edwards and current Republican Governor Jeff Landry.
Challenges in Data Collection
The audit pointed to difficulties in collecting accurate data on beneficiary eligibility and mortality, a situation made worse by the COVID-19 pandemic and a federal mandate that halted eligibility checks. LDH Secretary Bruce Greenstein described the findings as “embarrassing,” acknowledging the urgent need for enhancements in the integrity of the Medicaid system.
Financial Implications and Future Steps
In response to the audit’s revelations, LDH plans to withhold about $4 million from forthcoming managed-care payments in order to recover a portion of the misallocated funds. The department aims to implement monthly checks on Medicaid rolls to improve data accuracy, even though the federal government currently only requires such checks to occur every six months.
The audit also recommended utilizing additional datasets for mortality verification, which could serve to prevent future misappropriations of funds allocated for deceased beneficiaries. This recent review echoes findings from a similar audit conducted in 2017, which also identified deceased individuals who were still active in Medicaid enrollments.
Looking Ahead
As part of various measures stemming from an executive order signed by Governor Jeff Landry, further actions and reports related to the LA DOGE initiative are expected by December 2025. The Louisiana Department of Health is making strides toward enhancing the accuracy and accountability of the Medicaid program, with the goal of preventing discrepancies that can lead to significant financial loss.
The audit serves as a stark reminder of the importance of accurate data management within public health programs and the ongoing efforts necessary to safeguard taxpayer funds while ensuring that those in need receive proper care.
Deeper Dive: News & Info About This Topic
- WAFB: Louisiana Medicaid Audit Reveals $9.6 Million Payments to Deceased Beneficiaries
- NOLA: Louisiana Medicaid $10 Million to Dead Patients – Audit
- Fox 8 Live: Louisiana Paid Nearly $10 Million for Dead Medicaid Beneficiaries
- Business Report: Louisiana Medicaid Audit
- WBRZ: Audit Says $10 Million Paid to Deceased Medicaid Beneficiaries
- Wikipedia: Medicaid
- Google Search: Louisiana Department of Health
- Google Scholar: Medicaid Management in Louisiana
- Encyclopedia Britannica: Health Care
- Google News: Louisiana Medicaid Audit
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
