HHS OIG Defunds Hawaii Medicaid Fraud Control Unit After Four Years Without Indictments

The HHS Office of Inspector General will not recertify Hawaii's Medicaid Fraud Control Unit, cutting off $3 million in federal funding after the unit failed to produce any indictments or convictions over four years. Inspector General March Bell notified Hawaii Attorney General Anne Lopez of the decision in a letter. The decertification means Hawaii loses federal matching funds for its MFCU operations. This is the first known instance of OIG defunding a state MFCU for performance failure.

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