Court: State improperly held Medicaid money | www.statesman.com

In another setback for the state health agency charged with rooting out Medicaid fraud, an appeals court Thursday said almost $1.26 million was improperly withheld from a dental practice even after state regulators acknowledged that no fraud had taken place.

The 3rd Court of Appeals ordered the money to be paid to the practice, ruling that the state Health and Human Services Commission was being unreasonable by continuing to withhold the payment.

The issue began in 2011 when the commission and its investigative arm, the Office of Inspector General, began withholding 100 percent of the Medicaid orthodontia payments to Harlingen Family Dentistry. The agency said it found a credible allegation that the dental practice was engaging in fraud by submitting bogus reimbursement requests.

via Court: State improperly held Medicaid money | www.statesman.com.

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