AP: Molina Will Be Docked Payment

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The Associated Press reports that the Idaho Dept. of Health and Welfare is holding back funds from Molina Medicaid Solutions in the wake of last year's debacle, which tangled the state's Medicaid systems, putting clients and providers at financial risk.

In a new agreement with Molina, Health and Welfare will now pay no more than $15 million but penalties will be assessed if Molina doesn't meet operational standards. For example, the first payment sent to Molina under the new arrangement will be $12 million.

A series of headaches erupted shortly after Molina took over Idaho's Medicaid claims processing in May 2010. Thousands of payments were delayed, resulting in scores of Idaho caregivers being in a position of not being able to pay their bills.

To make matters worse, Idaho decided to accelerate payments to a number of providers but many of the checks were for services that had already been paid, resulting in double funding. As a result, the AP reports that Idaho is now trying to recover nearly $10 million in double payments.