# New York Medicaid improper payment audit

> Live situation record from CLSTR: https://clstr.news/situations/new-york-medicaid-improper-payment-audit
> Updated: 2026-09-28T03:33:30.000Z. Sources: 3. Developments: 2.

A federal audit by the U.S. Department of Health and Human Services Office of Inspector General found that New York issued approximately $7.6 million in improper Medicaid managed care payments for incarcerated individuals between January 2021 and December 2024. The funds, which included a $6.1 million federal share, were distributed to managed care organizations for 1,375 enrollees in state prisons.

The audit indicated that state agencies failed to consistently disenroll individuals after receiving notification of their incarceration. Discrepancies in personal information, system limitations, and pandemic-related overrides contributed to these errors. The Inspector General has recommended that New York return the funds to the federal government, while state officials stated they are reviewing the payments to recover overpayments.

## Timeline

### 2026-09-28: New York issued $7.6 million in improper Medicaid payments to incarcerated people

A federal audit found New York made $7.6 million in improper Medicaid managed care payments for 1,375 incarcerated individuals between 2021 and 2024 due to record-matching failures.

2 sources. https://clstr.news/cluster/new-york-issued-76-million-in-improper-medicaid-payments-to-incarcerated-people

### 2026-09-27: New York administration expands Deloitte Medicaid contract to $1.1 billion

New York’s Hochul administration expanded a Deloitte Consulting Medicaid contract to $1.1 billion via amendment, bypassing competitive bidding and drawing scrutiny from government watchdogs.

2 sources. https://clstr.news/cluster/new-york-administration-expands-deloitte-medicaid-contract-to-11-billion

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Cite as: New York Medicaid improper payment audit. CLSTR, https://clstr.news/situations/new-york-medicaid-improper-payment-audit