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Medicaid Gives Drug Store $1 Million for One Bottle of Eyedrops

When a drug store in Independence, Kansas billed Medicaid for one bottle of eyedrops, it received a check from Medicaid for more than $1 million....
October 18, 2005

When a drug store in Independence, Kansas billed Medicaid for one bottle of eyedrops, it received a check from Medicaid for more than $1 million. Employees of the drug store tried to return the mistaken payment, but were told they couldn't send the check back. Instead, employees were first told by the state's Medicaid billing contractor to deposit the check in the store's bank account, and future Medicaid payments to the store would be drawn from that deposit. That policy has now been changed.

The problem began when the pharmacy tried to bill Medicaid for a single bottle of eyedrops. But what came out on the Medicaid end was a bill for 99,999 bottles - at a cost of $999,999.99. And Medicaid sent a check to the store for $1,020,523. The check included the eyedrop payment and several other billings. State officials, the state's billing contractor and lawmakers are trying to figure out what went wrong. A legislative hearing was held. All the parties involved say no money is missing. The cash still sits in a separate bank account the store opened.

Mistaken $1 Million Payment to Pharmacy Brings Change in Medicaid Policy (AP 10/1/05)