Federal auditors have found that Illinois used faulty methods for withdrawing federal Medicaid money, resulting in overdraws the state later had trouble repaying in a report issued today (Monday).
The report says Illinois created “a perpetual ‘treadmill effect'” as it continued to overdraw and repay later. The state’s withdrawals exceeded its spending by an average of $60 million per quarter during the three years reviewed by the auditors.
The report says the federal government may have lost as much as $792,000 in interest because the state repaid the money two to six months later.
Illinois Department of Healthcare and Family Services Director Julie Hamos said in a response to the audit that her department is addressing the problem.