A Lincoln therapist, Dru McMillan, received a letter demanding payment of $21,042.73 after being accused of overbilling Medicaid for services provided to her patients. Despite her efforts to rectify the situation, she lost an appeal and had to negotiate a settlement, ultimately canceling her Medicaid contract in February. McMillan is one of 28 providers in Nebraska facing aggressive Medicaid audits that have led to demands totaling $600,000 in repayments. The audits are causing fear and anxiety among mental health providers in the state, with some considering leaving the Medicaid program altogether.
The National Association of Social Workers’ Nebraska chapter has reported that about 20% of mental health providers surveyed are planning to leave the state’s Medicaid program due to the rigorous audits and bureaucratic hurdles. However, state data shows that the number of mental health providers billing Medicaid in Nebraska has been increasing over the past decade, and the state has raised pay rates for Medicaid mental health services in recent years.
Despite the challenges faced by providers like McMillan, the state data suggests that there is no widespread exodus of mental health providers from the Medicaid program in Nebraska. The situation highlights the tension between the need for mental health services and the complexities of Medicaid billing and auditing processes.
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