Committee Approves Medi-Cal Program Audit

SACRAMENTO —The Legislature’s Joint Legislative Audit Committee approved of a request of an audit of California’s Drug Medi-Cal program due to media reports of widespread fraud.

The media investigations were done by CNN and the Center for Investigative Reporting. The audit will take place over the next several months.
Fraud was widespread in Los Angeles and Long Beach, with cases accounting for more than 50 percent of the total.

One example of the fraudulent actions is one drug rehabilitation program took care of 31 patients, but billed taxpayers for 179 of them. Other accusations include clinics paying patients to attend so they can bill the state more, counselors abandoning sessions, clinics billing people that didn’t have a drug problem and ones which are dead.

The audit plans on: Examining the last five fiscal years and determining how extensive the fraud was. Was correct action taken when facilities were caught committing fraudulent behaviors? Overlook effectiveness of state and county coordinated oversight. Ensuring felons and other prohibited persons don’t run the clinic. Are there enough regulators to prevent fraudulent actions? What laws need to be changed to prevent fraudulent action in the future?