The state of New York is grappling with what appears to be a rather interesting case of fraud. Yesterday, it was reported that many former residents of the state “failed” to report change of addresses as they collected a cool $28.5 M in state Medicaid subsidies. Understandably, the state’s comptroller is righteously concerned.

“The state is facing the worst fiscal crisis of our lifetime,” DiNapoli told reporters yesterday. “We can’t afford to waste millions of dollars on people who don’t live here. The Health Department has to cut Medicaid waste and abuse, and it can start by tracking down and stopping payments for out-of-state residents,” he added.

The amounts doled out to individual states as a result of the healthcare financing portion of Obama’s economic stimulus is apparently only one concern. Policing its ultimate use requires, at the very least, more state jobs — a scarcity in today’s economy. | LINK

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