Maryland Pays $207,000 in Mental Health Claims for Dead People

Because it did not verify information, the state Mental Hygiene Administration paid claims to people who might not have been eligible and were dead, an audit found.

The report, released Wednesday by legislative auditors, highlights problems with claims verification and digital security in the agency. The Mental Hygiene Administration, part of the Department of Health and Mental Hygiene, administers publicly funded services for the mentally ill and state mental health facilities. Some Marylanders who are not eligible for Medicaid are able to get their mental health services covered through the state’s General Fund.

Many of the agency’s problems stemmed from services contracted to an administrative services organization. This group was supposed to ensure eligibility, authorize services, and pay claims. The audit found that this organization was not always doing its job, and had paid claims to individuals who had not submitted all of the paperwork to determine their eligibility.

Auditors looked at claims from 16 people, who received a total of about $48,000 from the state’s general fund. Ten of those people did not have the required documentation of a Social Security number. Two had no proof of state residency. A dozen had said they received public mental health system coverage before, but there was no proof of that coverage for five people.

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