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NYSHIP contractors wasting millions of dollars


By SHERRY HALBROOK According to two audits by the Office


of the State Comptroller (OSC), the NYS Health Insurance Program (NYSHIP) erroneously paid as much as $11 million for special items such as implants, drugs and blood and evaluation procedures that were not performed. One audit


found 57 percent of the paid claims it reviewed were false or overbilled. That’s bad news for state


taxpayers and NYSHIP enrollees, including PEF members and retirees, who pay the premiums. In an April announcement, state


Comptroller Thomas P. DiNapoli said payments to hospitals accounted for an estimated $3.2 million of the $11 million in overpayments. NYSHIP also paid


medical providers as much as $7.8 million for “phony evaluations.” “While most New Yorkers


are watching their spending, Blue Cross and Blue Shield and United HealthCare are not monitoring bills and are letting the state overpay


health providers,” DiNapoli said. “An error rate showing that nearly six of every 10 claims are billed incorrectly is simply


unacceptable and cannot


continue. These companies have to do a better job watching taxpayer dollars.” NYSHIP provides health


insurance coverage to active and retired state, participating local


government and school district employees and their dependents. The state Department of Civil Service


contracts with Empire Blue Cross and Blue Shield to provide hospitalization coverage under the Empire Plan, the largest insurance option provided by NYSHIP.


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The Communicator June 2012—Page 11


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r iinfoformation w n w be r wiilll be requirired. In addition, Civil Service contracts


separately with United HealthCare (UHC) to process and pay medical and surgical claims for services provided to Empire Plan members. UHC processes more than 21 million claims annually, (totaling about $1.9 billion) for the Empire Plan. DiNapoli called on Empire Blue Cross


and Blue Shield to repay the state the $3.2 million it overpaid hospitals. According to a newspaper report, Empire has begun recovering those overpayments from the hospitals. For example, Empire paid one


hospital $34,542 for a special item that should have been reimbursed at $7,979. The audit of UHC covered 2009 and


found “Because of the large volume of claims, United officials relied extensively on the integrity of providers to submit their claims properly.” DiNapoli reported UHC officials


generally agreed with the audit’s findings and have initiated outreach and education to prevent future mistakes.


Health Notes


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