Officials cite past NEMT overpayments and a pending reclassification that could change federal match
Department officials described prior fraud and overpayment in the NEMT program, said rates were reduced to correct that, and noted a state-plan amendment is in progress to reclassify certain services so federal participation could be retroactive to July 1.
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Department leaders told the committee that early-decade increases in NEMT payments led to fraud and inflated costs, prompting corrective rate reductions. Director Ferrendino said the committee and department acted together to ‘‘bring down the rates’’ after identifying significant overpayments and fraudulent behavior in the sector.
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