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Auditors Find 28.4M Dollar Overcharge in Maryland Health Exchange

cashAn audit has found that the state of Maryland has overcharged the federal government $28.4 million in setting up its health care exchange, according to the Baltimore Sun. The problem, essentially, was that the state was able to get federal reimbursement based on projections of how many people would buy private insurance and how many would qualify for Medicaid, but these projections turned out to be way off the mark, said the Sun. While the year-long probe found no evidence of any intentional fraud or other criminal activity, it did say that there is a serious lack of internal controls and oversight.

Maryland state officials disputed the audit results, and said they believed fully they were following federal guidelines, though critics have said regardless of whether the misallocation was due to incompetence or malfeasance, it’s still troubling. The state may also have to repay the money at a time when it’s currently negotiating a $40 billion budget, said the Sun.