Federal officials have launched an inquiry into Medicaid payments to nine New York State institutions for the developmentally disabled, after the Poughkeepsie Journal revealed the facilities had reimbursement rates of $4,556 per day for each of 1,400 residents.
The U.S. Centers for Medicare & Medicaid Services announced the probe Thursday, when it released a Tuesday letter to the state Department of Health. In it, Sue Kelly, CMS associate regional administrator, asked the state to justify the rates, the highest in the nation by one study.
While the facilities are operated by the state Office for People with Developmental Disabilities, the Health Department has chief rate-setting authority.
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