$300 million mistake at DHHS

July 24, 2009 12:54:54 PM PDT
North Carolina officials said Friday that they've uncovered a $300 million accounting mistake in the Department of Health and Human Services.It overdrew that amount from federal Medicaid funds and now must pay it back.

Under an agreement with the feds, DHHS will pay back $200 million by the end of the month, and will repay the balance over the next fiscal year.

"This mistake should not have been made. Originating almost eight months ago, it should have been identified and reported earlier. I have discussed the matter with the Governor, and I am aggressively working to strengthen the internal controls and will take whatever other remedial actions may be necessary," DHHS Secretary Lanier Cansler said in a statement.

The error was reported to the Secretary on July 15. It did not and will not affect assistance to Medicaid recipients.