Investigators with the state's Department of Health Office of Inspector General (OIG) say that two family planning facilities alone have charged the Medicaid program more than twice their allowable cost for birth control, overbilling taxpayers by millions of dollars a year. A spokesperson for Planned Parenthood Wisconsin admitted, if the state will demand that they follow the law as written, it would have to shut down its locations across the state.
Inspectors say two facilities charged $3.5 million in fees they were not due for distributing contraception. Under state law, officials declare, the facilities may only charge taxpayers for the actual cost of the drug, plus a small distribution fee.
Instead, facilities paid $12.61 a pack for the abortifacient contraceptive Yaz, or $13 for Lutera, but charged the state $26.02.
Family Planning Health Services Inc. (FPHS) based in Wausau allegedly billed the state's Medicaid program for $2.3 million it was not owed, while NEWCAP Inc. located in Oconto asked for another $1.2 million, from 2010 to 2011.
Together, they left Wisconsin taxpayers on the hook for $3.5 million, OIG states.