Federal whistleblower lawsuit recently unsealed regarding nearly $1 billion projected budget deficit at Indiana’s Family and Social Service Administration. Allegations include insurance companies and hospitals defrauding Medicaid program. Lawsuit filed by two former employees accuses state officials of bowing to political pressure exerted by insurers and hospitals. Families affected by budget shortfall protest changes in Medicaid reimbursement for medically complex children. Organizations named in lawsuit include Anthem, Ascension Health, Community Health, IU Health, and the Marion County Health and Hospital Corporation. FSSA and organizations named in the suit did not comment. Parents call for more oversight of FSSA and its programs. Indiana Attorney General and federal investigators declined to intervene in the case. Taxpayers and whistleblowers may be reimbursed if settlement is reached or case goes to trial. Democrat Destiny Wells criticizes Indiana Attorney General Todd Rokita for not investigating Medicaid fraud allegations. State Rep. Greg Porter demands answers and accountability for the alleged fraud. Governor Eric Holcomb’s office did not provide a response regarding the situation. Families affected by Medicaid cuts are concerned about the situation and are calling for accountability and transparency.
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