Poughkeepsie… County Executive William R. Steinhaus today announced a settlement with the New York State Department of Health that will award $4.55 million in funds owed to Dutchess County. Beginning in the 1970s, New York State began to release clients from state psychiatric centers into the community, placing an undue fiscal burden on host counties having to cover costs for all medical services provided to these clients under the Medicaid program. Dutchess County hosted three large state centers in Dover, Wassaic, and the town of Poughkeepsie.

County Executive Steinhaus said, “State law had assured counties of 100% funding for all medical services provided to eligible clients who had been released from the state psychiatric hospitals, but the identification of these individuals for reimbursement purposes was problematic.”

Counties questioned whether all eligible clients were properly identified guaranteeing counties lawful reimbursement from the state.

“In recent months, the New York State Association of Counties (NYSAC), in partnership with state agencies, was able to provide lists to counties to identify and certify past eligible claims and facilitate this settlement,” continued Steinhaus.

“With the information we received, I asked county staff to work diligently to research and identify these claims, some going back ten years or more, and I commend Commissioner Allers and his staff for their hard work,” he added.

According to Commissioner Robert B. Allers, “This was a worker intensive search as many records were in storage or had to be recreated due to the age of the bills. Staff in our Medicaid Unit successfully carried out a difficult task to maximize our county’s claims.”

Medicaid has been at the forefront of the agenda of county officials and NYSAC for years. In 2005, the decades long county struggle with the state on the Medicaid cost structure met with some success. New York State agreed to slow the growth of new Medicaid costs to counties.

In yet another initiative to help protect taxpayers, County Executive Steinhaus also signed an agreement for Dutchess County to participate in NYSAC’s VerifyNY Medicaid fraud and abuse detection project.

Steinhaus also proposed a Medicaid Stabilization Plan to manage future costs and reduce the burden on taxpayers.

County Executive Steinhaus noted good fiscal management must include proper reimbursement and ensuring services are delivered appropriately.