New York State Health Dept. to appeal federal claim for return of $1.25 billion of Medicaid

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ALBANY, New York — The New York Health Department says it will appeal a federal claim for the return of more than $1.25 billion in Medicaid funds, saying federal authorities previously approved that funding and the claw back could hurt the state's health care system.

The Centers for Medicare and Medicaid Services says it issued the "disallowance" last week, which was discussed at a congressional hearing Tuesday, along with an audit report saying New York was overpaid another $200 million that should be refunded.

The $1.25 billion claim stems from New York's care in 2010-2011 for the developmentally disabled in large institutions, which are being phased out.

The state's Medicaid spending for 5.8 million low-income New Yorkers' health care was $55.6 billion last year, half reimbursed by the federal government.

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