Md. health officials seek to fix $3.5B accounting errors

They told lawmakers they’re documenting federal grants and seeking reimbursement for Medicaid and other health care expenses.
A general view of the Maryland State House in Annapolis, Md., Friday, Oct. 25, 2013. Completed in 1779, it is the country’s oldest state capitol still in legislative use. (AP Photo/Patrick Semansky)

Maryland Department of Health officials assured lawmakers on Tuesday that they’re fixing accounting problems that led state auditors to question whether the agency ever received federal reimbursement for $3.5 billion in Medicaid and other health care expenses on its books in Fiscal Year 2022. 

The health department’s errors, which date back years, could create a headache for budget writers as the state has to cover unreimbursed costs. Maryland already faces a potential $413 million shortfall next fiscal year that could grow to $2.2 billion in FY 2028.

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