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Audit Bombshell: Edwards Administration Admits to Ignoring State Law

Updated: May 22, 2019


Louisiana Department of Health caught handing out millions per month in illegal Medicaid payments to Governor’s campaign donors

Baton Rouge, LA – Last week, Legislative Auditor Daryl Purpera released the latest audit covering the Louisiana Department of Health. This report details the lack of compliance of the Louisiana Department of Health (LDH), behavioral health providers, and managed care organizations with certain provisions of Louisiana Revised Statute 40:2162.

The audit found that 114,963 (40.2 percent) of the 286,307 Medicaid claims submitted and paid for psychosocial rehabilitation (PSR) and community psychiatric support (CPST) and treatment services provided between January 1, 2019, and March 31, 2019, DID NOT include the National Provider Identification (NPI) number of the individual who provided the service.

These illegally paid claims represent $10,504,923 (40.4 percent) of the $26,023,323 paid for PSR and CPST services over the same three-month period.

This accountability requirement was introduced in the 2018 Regular Session as SB564 by Democratic Senator Jay Luneau. It passed through both chambers unanimously and was signed by the Governor, but apparently after signing the new law, John Bel Edwards threw it in the trash!

The Edwards Administration and the Louisiana Department of Health simply chose to ignore the law and the Louisiana Legislature; costing taxpayers MILLIONS every month and would end up costing the state ABOUT $40 MILLION by the end of the year.

The State Superintendent of Education is begging for $15 million for early childhood education. The state legislature is currently fighting over $39 million in school funding. Meanwhile, John Bel Edwards and his Louisiana Department of Health are breaking the law and on-pace to give away $40 million of taxpayer money.

Yesterday, the groups involved called this illegal $10 million handout a “technical glitch” and focused on the provider side of the problem.

Why is the Louisiana Department of Health intentionally paying MILLIONS in illegal Medicaid claims?


The same companies taking taxpayer money through these illegal claims are bending over backwards to funnel campaign money to Governor John Bel Edwards. The people of Louisiana deserve better.

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FOR IMMEDIATE RELEASE May 21, 2019

Contact: Jason Harbison jason@lagop.com