GAO report: Medicaid fraud contractors ineffective

MIAMI (AP) - A new report shows federal health officials are using bad data that is making it difficult to combat an estimated $21 billion a year in Medicaid fraud.

The Government Accountability Office released a report Thursday showing private contractors received $102 million to review Medicaid fraud data. But they have only found about $20 million in overpayments since 2008.

Experts warned significant federal and state resources are being poured in but only limited results are coming out.

The report said the audits were found to be so ineffective that they were discontinued, produced little or no findings or were put on hold. Last week, federal health officials ended their contracts with three of the contractors. Two others will be reassigned.