The state overpays hospitals and doctors to treat prison inmates, according to a new state audit, which recommends that the Department of Correction do a better job of controlling costs.
On average, medical providers billed the corrections department nearly 5 times more than the government insurance programs Medicare and Medicaid would pay, according to the audit, which was made public today.
The prison department tried to remedy the problem by getting legislation passed last year that would tie reimbursements to fees paid by the state health plan. But the provision was gutted in a law passed soon after.
The Department of Correction said in response to the audit findings that it is at the mercy of hospitals and must pay what they charge and sometimes more.
"Without the authority to compel medical providers to treat inmates, the Department is forced to negotiate contracts with each provider individually, at rates which are favorable to provider," corrections officials wrote.
At times the state ended up paying more than hospitals billed because of the contracts did not specify paying the lower of the billed amount versus the contracted amount.
A chart of the highest paid hospital inmate claims shows the state paid up to 879 percent more for services than Medicare or Medicaid would pay.
In one case, the state paid a hospital more than $482,000 to operate on an inmate, which was 400 percent more than the Medicare and Medicaid rate of about $120,500.
The audit notes that other states control the cost of inmate medical care by tying them to rates paid by private insurers, Medicaid or Medicare.
For example, South Carolina ties inmate hospital rates to private insurer rates and inmate physician costs to about 135 percent of Medicare rates.
