Caffery, Oubre, Campbell & Garrison, L.L.P.
New Iberia
Service, Integrity, Results

Louisiana regulators’ response to broad-based Medicaid fraud

It’s a $100 million annual fleecing of Louisiana taxpayers and insurers paying out Medicaid claims. And it reportedly involves legions of insureds who come nowhere close to actually satisfying the threshold income requirements for garnering eligibility.

We reported on the “stunning” results of a Medicaid-focused investigative probe in a recent blog post. We noted in our June 4 entry that “alarmingly high numbers of well-heeled state residents are wrongly enrolling in Medicaid expansion that has been occurring over the past several years.”

Louisiana lawmakers – and, of course, defrauded insurers – want to see the ruse stopped. One researcher and public policy expert terms the reality of mass outlays being expended on persons making Medicaid claims who don’t pass eligibility muster a “moral hazard.”

What especially galls many commentators on the matter is the fact that high numbers of people with notably high incomes who were granted Medicaid eligibility already had health policies. Their mass applications have overwhelmed processors and made things notably difficult for lower-income individuals and families that truly do qualify for Medicaid.

“We are spending taxpayer dollars to subsidize people who already had health insurance,” notes the above-cited public policy principal.

Clarity and needed change now seem forthcoming in the wake of state congressional action. Louisiana House Bill 72 recently passed through chambers and is now being considered in the senate. HB 72 seeks to give regulators expanded auditing power over the Medicaid program. If enacted, a tandem bill in the senate (SB 179) would provide for close scrutiny of current Medicaid recipients with over-the-threshold incomes.

The widespread program irregularities are widely harmful for a diverse demographic across Louisiana. Fraud and abuse in the state’s Medicaid program will hopefully be fully identified and strongly responded to without delay.

No Comments

Leave a comment
Comment Information

contact us

With offices in Lafayette and New Iberia, our lawyers represent clients in state and federal courts throughout Louisiana. Contact us today to schedule your case assessment with one of our experienced attorneys. Email or call us at 337-446-2442 to reach our Lafayette office or call 337-352-2310 to reach our New Iberia office.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Lafayette Office
100 East Vermilion Street
Suite 201
Lafayette, LA 70501

Phone: 337-446-2442
Map & Directions

Lafayette Office

New Iberia Office
800 South Lewis Street
Suite 205
New Iberia, LA 70560

Phone: 337-352-2310
Map & Directions

New Iberia Office