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NY Medicaid payments called 'excessive'

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ALBANY — Federal oversight officials say New York's Medicaid payments for disabled residents have been "excessive," with the federal share $320 million higher than actual costs in 2010.

In a report Wednesday, the inspector general of the U.S. Department of Health and Human Services says New York's Medicaid reimbursement rates at state-operated residences were more than double the rates at privately operated residences offering the same services.

The federal government pays half New York's Medicaid costs.

The report notes that state health officials have taken "aggressive actions" to address the overpayment issues, including a new payment method intended to be retroactive to April 1, 2013.

Oversight officials issued a report two years ago concluding the federal overpayment for those services was $701 million in 2009.

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