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Government Overpaid for Medicaid Enrollees Who Also Had Private Coverage

February 11, 2015

The federal government could save millions of dollars each year if it truly established Medicaid as the "payer of last resort," a new audit has found.

The federal government could save millions of dollars each year if it truly established Medicaid as the “payer of last resort,” a new audit has found.

Nearly 1 in 7 people enrolled in Medicaid was also insured by a private company—a total of 7.5 million people—which should mean a large amount of government savings.

But a lack of data and coordination failures means that the government has sometimes paid medical bills that should have been covered by private companies, according to a report released Tuesday by the Government Accountability Office.