Gov't Report: No Clear Way for IRS to Block Medicaid Payments to Providers Who Cheat on Taxes

Thousands of Medicaid health care service providers still got paid by the government even though they owed hundreds of millions of dollars in federal taxes, congressional investigators say. A legal technicality is making it harder for the IRS to collect.

In a report released Thursday, the Government Accountability Office says Medicaid payments to doctors, hospitals and other providers aren’t technically considered federal funds, since they’re funneled through state health care programs.

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Source: The Washington Post