Nebraska lawmakers to use recovery audits to reduce healthcare costs

Lawmakers in Nebraska took the first step to limit the state's Medicaid spending by passing a bill that would authorize a recovery audit, The Associated Press reports. In a 30-0 vote, the Nebraska state Senate approved the state's Department of Health and Human Services to assign a contractor to audit the state's payment histories toward Medicaid.

The decision was made so lawmakers could get a better grasp of what sections of the state's budget can be trimmed. According to the AP, the contractors will analyze claims received by healthcare providers in the state and determine if the payments were appropriate. Lawmakers say the recovery audit will help reveal any fraudulent activity and prevent further fraud.

The AP reports that the bill will pay the contractors based on how much they are able to recover. Nebraska is not alone in this effort. State Senator Kathy Campbell told the AP that Nebraska is one of 40 states considering a recovery audit of its Medicaid payments.
Delaware Senator Tom Carper wrote for the Huffington Post that recovery audits have repossessed more than $1 billion in taxpayer dollars that have gone to Medicare and Medicaid.

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