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June 12, 2025

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Letter to Editor: Fraud, Waste and Abuse with Maryland Medicaid

March 21, 2025 by Letter to Editor

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In December, the company contracted to manage Medicaid in Maryland changed from a company we shall call O to a new servicer we shall call C. A bare minimum of information was shared with providers in the field regarding how to manage the transition.  While both companies use the same standard form (CMS -1500)for billing, there are substantial differences in the information they want and even where on the form they want it. But no one made the providers aware of these changes (or perhaps more correctly, the means of disseminating this information was less than robust), not easy to access or easy to find and may have required many hours of online instruction that providers do not have) and claims just get denied.

I, and people that I know in this field have spent NUMEROUS hours on hold attempting to resolve delays in payment for services rendered. I, myself, on at least two occasions, sat for times in excess of 5 hours on hold to get information that ended up being entirely useless and did not resolve the problem. Multiple providers in Talbot County have not been paid for services rendered since December 20, 2024 (the date that the transition from O to C took place). Today marks 3 months without pay for them. This does an incredible disservice to our citizens, both patients and providers.

Similar issues occurred in 2020 when Maryland Medicaid, then managed by the same company as C transitioned to O. The resulting problems contributed a great deal to the demise of  agencies across Maryland, including in Talbot County.  I cannot imagine why under any circumstances anyone would switch back and forth between two entities that are either so completely incompetent or intentionally abusive of our citizens…for services that are so critical to basic human needs and rights.

This is not only inappropriate and unethical…it is criminal.  If I, as a biller, submit false claims to the insurance company, they will come at me with relatively unlimited resources. Meanwhile, they have set up an arcane and labyrinthine system to delay or avoid paying providers altogether for services. The hours required to sit on hold attempting to rectify problems represent a high cost for providers who cannot see patients while sitting on hold or pay an admin person to do so for them.

Perhaps we should look at who is gaining and losing in this matter.  As a result of the shenanigans in 2020, some agencies put a cap on how many Medicaid clients they would accept. Others ceased taking Medicaid clients altogether. Thus, those who had Medicaid were “covered” except that there were not nearly enough providers to serve them and, as such, fewer claims were made to Medicaid while O, or now C, collects premiums from the state but is boosting its bottom line by making sure fewer claims will be submitted in spite of the overwhelming need for medical or mental health care. Again, vulnerable people will find less access to services because of this. I can tell you that middle-class providers are being harmed. But I will bet that the CEO’s of C and O….are not losing a penny nor a minute of sleep over this. I wonder who in the state government negotiates for the contract for Maryland Medicaid every few years and why they seem to choose these corporations that do not serve the needs of those who depend on them.

I feel that the state has a duty to its citizens and the providers that serve them to ensure that this is corrected as soon as humanly possible.
If you are reading this and find this situation objectionable, I urge you to call the Maryland Attorney General’s office, the Governor as well as your local Delegates and State Senators in Annapolis and raise your concerns.
James Siegman
Talbot County

The Spy Newspapers may periodically employ the assistance of artificial intelligence (AI) to enhance the clarity and accuracy of our content.

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Letters to Editor

  1. Constance Pullen says

    March 21, 2025 at 3:34 PM

    James, Thank you for your comments. I too am suffering from this transition. I too have not been paid since mid December.
    I have spent more than 13 hours on hold. Finally today I spoke with a “real” person who was unable to assist me had had no idea why I had not received payment.
    I do not feel that it is ethically correct to abandon my clients.It certainly is not their “fault “ that Medicaid has not paid me for 4 months.
    I think at this point I am owed around 12,000 dollars and am falling behind on my other practice obligations.
    The only advice I received today was to wait until my claims were processed. I can see in the portal they have all been processed ( looked at) but not been paid.
    Extremely frustrating.

  2. Lance A Simon says

    March 21, 2025 at 3:50 PM

    Thank you for bringing this to everyone’s attention, Mr. Siegman. I am shocked and saddened by your experience having to work so hard to get the benefits you are due. I hope this letter brings the issue to the attention of people that can get this rectified immediately.

  3. Michael Allison says

    March 21, 2025 at 4:43 PM

    James,
    Thanks for bringing this information out, but why don’t you name the companies involved? Transparency is the best way to solve these type of issues. As long as the offending companies can hide from the public, the problems will never be resolved!

  4. Reed Fawell 3 says

    March 22, 2025 at 8:50 AM

    After reading this article, one should be both enraged and or wanting to cry. I thought the governor of Maryland was an action oriented guy. It’s time for the Maryland governor to get angry and solve this disgrace. Otherwise he should not be governor.

  5. Meg Olmert says

    March 22, 2025 at 9:37 AM

    Thank you James for taking the time to explain this life threatening issue. Who indeed, awards these contracts? And why? I will reach out to the offices you suggest to demand answers and correction to this abuse. This is the way we can all come together to help each other. The time is NOW!

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