State Auditor Beth Wood

North Carolina paid Medicaid providers about $440,000 more than it should have last year. That's according to a report Friday from the state auditor's office, which found several problems in its annual review of the North Carolina Department of Health and Human Services.

About a third of the overpayment consisted of state money, as the federal government covers about two-thirds of Medicaid costs in North Carolina. Dave Richard is deputy secretary of the state Department of Health and Human Services, and he offered this perspective on the overpayment: 


The North Carolina Department of Health and Human Services has been under fire this week. On Tuesday, the department's secretary received a day-long grilling in legislative committee hearings. That same day, the website North Carolina Health News reported that the McCrory administration and the department had done some extra spin to make the state's Medicaid program look particularly broken.

An independent audit found North Carolina's Medicaid program has been horribly managed in terms of administrative costs and budgeting.  State Auditor Beth Wood released the report Thursday, which examined how the Department of Health and Human Services has overseen Medicaid the last three years.

Let's start with some perspective on just how big the state's Medicaid program is. More than 1.5 million North Carolinians use it, and it costs the state about $36 million a day.