A federal whistleblower lawsuit was just unsealed that provides insight into the FSSA's announcement last December of a nearly $1 billion projected budget deficit.
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INDIANAPOLIS — 13News has new information about what might have led to a massive Medicaid budget shortfall last year and how it may have been prevented in the first place.
A federal whistleblower lawsuit was just unsealed that provides insight into the Family and Social Service Administration's announcement last December of a nearly $1 billion projected budget deficit.
That deficit meant cutting services to some of the most vulnerable Hoosiers.
The lawsuit is hundreds of pages long and details the allegations. It basically claims that several insurance companies and hospital systems defrauded Indiana's Medicaid program by improperly billing them for patient care and walked away with more than $700 million.
According to the lawsuit, the alleged fraud sometimes involved duplicate claims, some of them made months and years after a patient had died.
The whistleblowers named in the lawsuit are two former state employees. According to court documents, they filed their lawsuit in 2021.
One of those former employees claims he worked closely with a contractor to look for fraud and warn hospitals and insurance companies when improper billing and claims were found.
According to the lawsuit, that former employee says in 2017, state Medicaid officials told him and his team to "significantly curtail its efforts" to...
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