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Health: Medicaid Overpayments Made to Hawaii Should Be Disallowed

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Report Type Reports and Testimonies
Report Date March 20, 1985
Report No. HRD-85-47
Subject
Summary:

GAO reviewed Hawaii Medicaid operations to determine if federal Medicaid funds were properly used as a secondary resource to pay for medical costs that resulted from motor vehicle accidents.

GAO found that: (1) Hawaii did not always follow federal statutory requirements to use other insurance available to Medicaid recipients before Medicaid; (2) under its no-fault motor vehicle insurance law, Hawaii allowed insurers to exclude medical coverage for Medicaid recipients, who in certain circumstances, were injured while driving their vehicles; and (3) when the coverage for Medicaid recipients was not excluded, Hawaii was not actively pursuing collections from the no-fault insurers. GAO estimated that, during fiscal years 1982 to 1984, Hawaii paid about $1.4 million in federal funds for health services that it would not have paid if it had followed Medicaid's third-party liability provisions.

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