by Baton Rouge, LA – The Louisiana Department of Health (LDH) paid an estimated $9.6 million in Medicaid premiums for more than 1,000 people after their deaths between February 2019 and March 2025, according to a new progress report from the state auditor.
Findings From the Audit
The report identified 1,072 deceased beneficiaries who remained listed as eligible for Medicaid, resulting in fixed monthly payments to Managed Care Organizations despite no services being provided.
- 511 cases were identified through obituary records
- 210 cases were found in LDH’s own records
- Remaining cases came from other data sources, including the federal Social Security Administration’s Death Master File
The median delay between death and the last payment was just 23.5 days for deaths caught through LDH’s records, but more than 799 days for deaths identified via the Death Master File.
Auditors found that 68% of the cases—worth nearly $7.7 million—were discovered using sources not currently included in LDH’s eligibility checks.
Previous Warnings and Response
This issue is not new. A 2017 audit also flagged payments for deceased Medicaid recipients. Under current rules, deaths must be reported within 10 days, but LDH primarily relies on Louisiana’s own vital records database.
In a July 30 letter responding to the latest findings, LDH said it “concurs with the recommendation” to expand its data checks. The department is working with the U.S. Department of Treasury to gain access to the Social Security Administration Death Master File and plans to incorporate it as a third-party source once approved.
Financial Recovery
LDH said it will withhold roughly $4 million in flagged improper payments from Managed Care Organizations during its next monthly payment cycle.
