Neighborhood's Statement Regarding the Auditor General’s Findings

We have been aware of and accruing the excess capitation payments in our Medicaid Expansion line of business and are partnering with EOHHS to repay these federal funds according to the schedule EOHHS requested. 

This issue arose when EOHHS set the Medicaid Expansion rates, effective January 1, 2014. EOHHS did not have previous utilization data for this new population associated with the Affordable Care Act. Once the actual utilization data became apparent, EOHHS worked with the health plans and the Federal Government to adjust the payments and to begin the process of returning funds.

There are no adverse financial issues for Neighborhood associated with the Auditor General’s findings. We continue to successfully manage the health of our Medicaid Expansion members, improving access to care and outcomes while controlling costs. 

Peter M. Marino
President and Chief Executive Officer