Audit: More Than 300 Dead People Enrolled In NY's Health Exchange

ALBANY, N.Y. (CBSNewYork/AP) -- The New York State Health Exchange doled out $325,000 in overpayments to the deceased throughout the 2013 fiscal year, auditors found.

Auditors said flaws in the eligibility process also resulted in New York enrolling 21 dead people for Medicaid, while continuing government-funded health coverage for 333 others who died.

The state comptroller's office says its auditors found overpayments of $3.4 million in total for the year starting Oct. 1, 2013.

The Health Department says it's been awaiting a new federal system to verify deaths. It confirmed 321 people cited in the audit were dead, four are still alive and it's checking the other 29.

Auditors say the Department of Health also issued multiple identification numbers to some recipients, resulting in Medicaid overpayments of $2.8 million.

The NY State Health Exchange launched in Oct. 2013, but many faced confusion and other issues like lost insurance coverage and high premiums though the initial enrollment process.

The exchange was established under the Affordable Care Act in an effort to extend coverage to uninsured New Yorkers.

Medicaid now covers about 6 million New Yorkers and costs $60 million annually.

The department notes state enforcement efforts in 2011-2012 recovered $1.73 billion.

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