A recent audit by New York’s Department of Health has found that the state in 2013 paid $325,000 in Medicaid benefits for hundreds of people who have already died.

The audit initially turned up 354 dead residents who were incorrectly enrolled in Medicaid, David Lee Miller reported on “Happening Now.”

“State officials say they have found ‘a grave mistake,’” he said Wednesday. 


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Officials now say that most of the money is expected to be recovered. Four of those 354 people are still alive, while the status of 29 others remains unconfirmed.

“That still leaves at least 321 dead people on the Medicaid books,” Miller said.

While New York Assistant Comptroller Brian Mason acknowledged that the mistake was “indicative of weakness that exists in the system,” he added that it was “not necessarily that significant… in relation to the overall program.”

Those remarks were mirrored by Henry Aaron, a senior fellow at the Brookings Institution and health care expert, who told Fox News that this is “a remarkably low error rate.”

“Rather than being a black mark, it’s a sign of relatively good administration,” said Aaron.

Learn more about how the error came about in the clip above.


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