Medicaid overpays millions for diapers

Medicaid overpays millions for diapers

A lack of competitive bidding processes among state Medicaid agencies caused the program to overpay for diapers by about $62 million in 2012, according to a report released by federal auditors on Monday.

Only five state Medicaid agencies have implemented competitive bidding programs for “disposable incontinence supplies,” according to the inspector general for the department of Health and Human Services.

Those states reported saving up to of 50 percent on those supplies, the IG report found.

States nationwide implemented cost control mechanisms, the report noted, but Medicaid could have saved about $62 million if competitive bidding processes were adopted nationwide.

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