NATIONAL NEWS

Medicaid paid more than $207 million for dead people. A new law could help fix that

Dec 23, 2025, 4:05 AM

FILE - The U.S. Department of Health and Human Services building is seen, April 5, 2009, in Washing...

FILE - The U.S. Department of Health and Human Services building is seen, April 5, 2009, in Washington. (AP Photo/Alex Brandon, File)
Credit: ASSOCIATED PRESS

(AP Photo/Alex Brandon, File)

WASHINGTON (AP) — Medicaid programs made more than $200 million in improper payments to health care providers between 2021 and 2022 for people who had already died, according to a new report from the independent watchdog for the Department of Health and Human Services.

But the department’s Office of Inspector General said it expects a new provision in Republicans’ One Big Beautiful Bill requiring states to audit their Medicaid beneficiary lists may help reduce these improper payments in the future.

These kinds of improper payments are “not unique to one state, and the issue continues to be persistent,” Aner Sanchez, deputy regional inspector general in the Office of Audit Services told The Associated Press. Sanchez has been researching this issue for a decade.

The watchdog report released Tuesday said more than $207.5 million in managed care payments were made on behalf of deceased enrollees between July 2021 to July 2022. The office recommends that the federal government share more information with state governments to recover the incorrect payments — including a Social Security database known as the Full Death Master File, which contains more than 142 million records going back to 1899.

Sharing the Full Death Master File data has been tightly restricted due to privacy laws which protect against identity theft and fraud.

The massive tax and spending bill that was signed into law by President Donald Trump this summer expands how the Full Death Master File can be used by mandating Medicaid agencies to quarterly audit their provider and beneficiary lists against the file, beginning in 2027. The intent is to stop payments to dead people and improve accuracy.

Tuesday’s report is the first nationwide look at improper Medicaid payments. Since 2016, HHS’ inspector general has conducted 18 audits on a selection of state programs and had identified that Medicaid agencies had improperly made managed care payments on behalf of deceased enrollees totaling approximately $289 million.

The government had some success using the Full Death Master File to prevent improper payments earlier this year. In January, the Treasury Department reported that it had clawed back more than $31 million in federal payments that improperly went to dead people as part of a five-month pilot program after Congress gave Treasury temporary access to the file for three years as part of the 2021 appropriations bill.

Meanwhile, the SSA has been making unusual updates to the file itself, adding and removing records, and complicating its use. For instance, the Trump administration in April moved to classify thousands of living immigrants as dead and cancel their Social Security numbers to crack down on immigrants who had been temporarily allowed to live in the U.S. under programs started during the Biden administration.

National News

FILE - Sen. Thom Tillis, R-N.C., left and Sen. John Cornyn, R-Texas, right arrives for a classified...

Associated Press

White House faces unusual obstacle on confirming Trump judges: other Republicans

WASHINGTON (AP) — Several Republican senators are complicating a White House plan to leave an enduring imprint on the judiciary long after President Donald Trump leaves office by throwing up obstacles for a handful of his judicial nominees in the final weeks of their Senate majority. In Texas, outgoing Sen. John Cornyn has expressed reservations […]

50 minutes ago

Trump (3)...

WILL WEISSERT, The Associated Press

Trump says the towering arch he wants to be build might be dedicated to military veterans

President Trump observed Veterans Day by suggesting that the arch he wants to build in his own honor would also be dedicated to the U.S. military.

2 hours ago

Associated Press

Teen arrested in killing of Ghanaian student, 15, on his way to school in New York City

NEW YORK (AP) — A teenager was arrested Wednesday in the fatal shooting of a 15-year-old Ghanaian immigrant on his way to school, New York City police said as the victim’s family, Ghana’s government and civil rights advocates pressed for more information. The 17-year-old male suspect was arrested on murder and other charges in the […]

2 hours ago

FILE - A view of the suburbs of Las Vegas from atop the Stratosphere tower looking west down Sahara...

Associated Press

Trump administration to pursue public land sales and a decrease in federal ownership

BILLINGS, Mont. (AP) — President Donald Trump’s administration wants to sell public lands to states, tribes and local governments as part of an effort to “decrease the size of the federal estate,” according to a new five-year plan presented by the Interior Department. Agency officials said the sale of federal property would allow the government […]

2 hours ago

This photo provided by Amber Hammond shows Koah Sharp, 11 months old, at at his great-aunt's home i...

Associated Press

Missing South Carolina infant rescued after being buried alive in a dog crate for 24 hours

When an 11-month-old infant was reported missing in South Carolina, dozens of first responders combed the countryside for the “bright boy with reddish blond hair” that the sheriff’s office said had disappeared while his grandmother ran errands. After a full day of searching, authorities found freshly disturbed soil in the woods not far from the […]

3 hours ago

Pete Hegseth Impeachment House Republicans...

Konstantin Toropin, Ben Finley and Joey Cappelletti, Associated Press

Pete Hegseth impeachment effort blocked by House Republicans

The House on Tuesday turned aside a resolution to impeach Defense Secretary Pete Hegseth, halting an effort to remove the Pentagon chief.

3 hours ago

Medicaid paid more than $207 million for dead people. A new law could help fix that