State National

Study urgently stresses policy reforms to protect disability services amid Ohio Medicaid fraud

A new national policy report is shining a light on fraud, waste and abuse in Medicaid’s Home and Community-Based Services programs, with strong implications for Ohio following years of legislative efforts by state lawmakers to address billions in questionable billings.

Able Americans, a project of the National Center for Public Policy Research, released “Addressing Fraud, Waste, and Abuse in Medicaid’s Home and Community-Based Services” alongside a May 20 press release.

The report stresses that while HCBS allows roughly 8.4 million Americans with disabilities to live independently at home rather than in institutions, unchecked fraud threatens the program’s long-term viability.

“Fraud must be rooted out. People with disabilities should not be uprooted with it,” the Able Americans report states. Authors Leslie Ford, Sara Hart Weir and Rachel Barkley argue that when Medicaid dollars are diverted through improper billing, undelivered services or weak oversight, both taxpayers and legitimate recipients suffer. Families relying on personal care, respite and community supports risk losing access if the program becomes unsustainable.

In Ohio, concerns are particularly acute. A recent Daily Wire investigation has exposed over $2.5 billion in potentially unverifiable home health billings, including thousands of shell LLCs with a heavy concentration of claims in the Columbus area.

The findings substantiate issues that Ohio lawmakers have worked to remedy for over six years, despite efforts being vetoed by Gov. Mike DeWine and amid a near-media blackout.

State Auditor Keith Faber began flagging significant issues and irregularities in 2019 during the era when Dr. Amy Acton, now running for governor as a Democrat, served as DeWine’s director of the Ohio Department of Health.

In response, Ohio’s legislative leaders, such as Rep. Mike Dovilla, R-Berea; Speaker of the House Matt Huffman, R-Lima; and Vivek Ramaswamy’s running-mate, Senate President Rob McColley, R-Napoleon, passed budgetary reform measures in 2019 and 2021 to require performance audits. Both efforts were vetoed by DeWine.

“In 2019, the General Assembly passed as part of its budget the requirement that the state auditor audit Medicaid and its various agencies, a performance audit and a whole number of other things, things that would look at what’s in the reports of this,” Huffman told reporters, according to the Statehouse News Bureau. “Gov. DeWine vetoed that.”

Yet their persistent advocacy, along with recent revelations, has helped to spur actions including provider moratoriums, data analytics for fraud detection, expanded eligibility and Electronic Visit Verification reviews.

Closely aligned with the six targeted policy recommendations outlined by Able Americans — greater transparency, stronger federal and state oversight, mandatory Electronic Visit Verification, adding more self-directed options, outcome tracking, ownership disclosures and limits on misused funds — Ohio Republicans have launched various efforts this week to continue fighting fraud. The only question is whether they’ll be signed by Ohio’s next governor.

Yet as fraud and the federal deficit raise questions about national security, with services for the most vulnerable largely dependent on passing budgetary reforms, the Able Americans report appears to be a call to action for Ohio’s leaders and voters alike.