GOP takes credit as HHS lowers Medicaid payments

“The new payment rate confirms that HHS has been overpaying the State of New York billions of dollars over the past two decades for this Medicaid funded service, in violation of federal law,” Issa said in a statement.

The payments concern facilities known as developmental centers. Because the centers are run by the state, Issa charged, they have an incentive to keep their costs high, boosting federal Medicaid payments and thus freeing up state resources for other projects.

“While the new rate may bring the New York developmental center payment rate in compliance with the law, the Department needs to aggressively pursue recovery of the decades of overpayments and guarantee an immediate end to all similar overpayments," Issa said.