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Audit: City Sent Benefits To Dozens Of Ineligible People

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SACRAMENTO (CBS13) – A new audit shows the City of Sacramento made frequent overpayments on health care benefits or made payments to people who weren’t eligible to receive them, costing taxpayers hundreds of thousands of dollars.

City auditor Jorge Oseguera said the report shows a pattern of overpayments to Healthnet and Kaiser, with preliminary analysis showing bills may have been overpaid by an average of $68,000 a month, costing a total of $480,000 in 2009 alone.

“There really wasn’t any checks and balances,” Oseguera said. “What we want to do here is identify those areas where there have been lapses… and implement the controls that are necessary to prevent or deter these types of situations from creeping up in the future.”

The report also states that 42 ineligible employees continued receiving benefits, costing the city $750,000. In one case, the ineligible employee received benefits for 19 months after death, costing the city $19,000.

The director of public employees for Local 39 said the news is especially outrageous in light of the approximately $40 million deficit weighing down the city and the severe personnel cuts in recent years.

“The workers are not there because we’ve got these overpaid, incompetent people still managing,” Joan Bryant said.

The full audit can be read here. (.pdf format)

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