US: Funding Suspension By NM Didn't Violate Rules

Jul 16, 2013

A federal agency says New Mexico's suspension of payments to 15 behavioral health care providers didn't violate federal rules.

The Santa Fe New Mexican reports that the federal Centers for Medicare and Medicaid Services won't go beyond that by saying whether Medicaid regulations required the funding suspensions.

But the agency believes the state Human Services Department acted in accordance with federal regulations and guidance provided by the federal agency.

The funding suspension was prompted by findings of an audit by a state contractor. It said 15 nonprofit providers failed to meet standards, overbilled by tens of millions of dollars and may have engaged in fraudulent activities.

All of the providers are seeking exceptions to have their funding restored, and eight have filed a lawsuit.

Information From: Santa Fe New Mexican.

Copyright 2013 The Associated Press.