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DHHS: Medicaid program overpaid $10M to contractor
Posted: 06.02.2011 at 4:20 PM
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State Department of Health and Human Services director Tony Keck  / FILE
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COLUMBIA, S.C. (AP) -- The state's Medicaid program says it overpaid one of its contractors by more than $10 million.

State Department of Health and Human Services director Tony Keck said Thursday that he's trying to negotiate a repayment from Community Health Solutions of St. Petersburg, Fla.

Keck said the overpayment wasn't the company's fault. He says it was created as the agency used flawed data and assumptions to calculate savings for the state's Medicaid program.

Community Health Solutions chief executive Dale Schmidt said it is contesting the repayment because the agency's reasoning is incorrect.

The questioned payments were for work the company performed between 2006 and 2009. It is the biggest contractor, handling about 125,000 of the state's patients in Medicaid managed care programs.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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