Report: Idaho Could Lose $2 Million Because of Molina Mess

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The State Senate Health and Welfare Committee will be briefed this afternoon on Idaho's problem-plagued Medicaid claims processing system.

Legislative auditors will officially present their report today but an advance copy of the audit revealed that the Medicaid processing mess, which snowballed through much of 2010, could wind up costing Idaho more than $2 million. The report concludes that neither the Department of Health and Welfare nor Molina Medicare Solutions were adequately prepared when Idaho switched to a new processing system, managed by Molina, last June.

The report said an estimated $2 million sent to Medicaid providers last year to keep them in business may never be recovered because some of the providers have since closed their doors.