In related news, New York City will pay $1 million to settle Medicaid probe.
The Wall Street Journal: Moody's: Medicaid Issue Puts New York State Rating At Risk
One of the nation's biggest credit-rating firms warned New York officials and investors Monday that the state's much-improved rating is at risk as the federal government tries to claw back nearly $1.3 billion in Medicaid payments. In its report published Monday, Moody's Investors Service said the potential Medicaid repayment is a "credit negative" for the state. The "repayment would result in an unwelcome drain on the state's cash balances," the report said, and future repayments would "pinch the state's liquidity" (Kravitz, 8/4).
The Associated Press: NYC To Pay $1M To Settle Medicaid Probe
Federal authorities say New York City has agreed to pay $1.05 million to settle allegations that the city's Human Resources Administration failed to stop Medicaid payments for health care coverage for beneficiaries who became ineligible (8/5).