SACRAMENTO – Yesterday Assemblyman Scott Wilk, R-Santa Clarita, attended a Joint Oversight Hearing with the Assembly Health and Accountability & Administrative Review Committees to review the Drug Medi-Cal Program and allegations of widespread fraud. The hearing focused on examining the provider certification, claims payment and auditing process in the Drug Medi-Cal Program.
In July 2013, an investigation by the Center of Investigative Reporting and CNN uncovered that over the past two fiscal years, the Drug Medi-Cal Program paid $94 million to 56 drug and alcohol rehabilitation clinics in Southern California that have shown signs of deceptive or questionable billing. The claims predominately came out of Los Angeles County which included billing for clients who were either in prison or dead and incentivized patients with cash, food and cigarettes to attend counseling sessions.
Members at the hearing asked that the Department of Health Services report back to the Legislature within six months.
“This Joint Committee hearing revealed the lack of accountability and transparency in the state system,” Wilk said. “The state has failed to manage the current system, yet we are adding 1.4 million new Medi-Cal patients through the Affordable Care Act. Potentially hundreds of millions of dollars were stolen robbing patients of services and taxpayers of their hard earned money.”