Auditor Wants Surety Bonds For Medicaid Providers, Saying Most Overpayments Don't Get Paid Back

Feb 27, 2018

The state auditor says he wants Medicaid providers to insure that they’ll do the work the state is paying them for by putting up some money to prove it. He’s backing a bill that he says will help the state recover money spent on fraudulent payments.

Auditor Dave Yost said in December that his team found overpayments to 133 Medicaid providers since 2011 that added up to nearly $35.7 million with interest – and that more than 90 percent of that money hasn’t been paid back.  Yost said he wants professional Medicaid providers to have to acquire surety bonds as insurance to back their work. “Indiana, Texas, Florida and New York already use an approach like this, and we think Ohio needs to do this too,” Yost said.

Transportation and home health care agencies would be required to secure $50,000 surety bonds, and home health aides $10,000 bonds. The bill would also require Medicaid providers to complete certification before payment. Yost said most overpayments are the result of insufficient documentation or uncertified care.