Exposing the $103 Million Medicaid Mismanagement: Citizens for a New Louisiana Holds LDH Accountable
By The Bayou Insider Staff
(If you want to dive deeper into this issue, go check out Michael Lunsford’s piece titled: Long gone: LDH ‘Misplaces’ $103 Million… in Another State?!)
In a state where cries for fiscal responsibility grow louder each year, a new report reveals yet another example of gross mismanagement within the Louisiana state government—this time involving more than $103 million in Medicaid payments made on behalf of individuals who no longer even live here.
At the center of the exposé is Citizens for a New Louisiana, a government watchdog organization that continues to shine a light on inefficiencies and waste most politicians won’t touch. Their latest findings are based on a report from the Louisiana Legislative Auditor (LLA) and point to major failings within the Louisiana Department of Health (LDH), sparking outrage among taxpayers who are already being told the state is facing a fiscal cliff.
$103 Million Gone—And Almost Nobody Noticed
According to the LLA, Louisiana’s Medicaid program paid more than $103 million over a 12-month period to more than 22,000 individuals who no longer live in Louisiana. These weren't small clerical oversights. Here's how the money broke down:
$774,051 went to individuals with known out-of-state addresses.
A staggering $102.3 million went to individuals with active driver's licenses from other states, a clear indication they no longer reside in Louisiana.
Many of the payments were made for services provided exclusively by out-of-state healthcare providers, further confirming the recipients had moved away.
Even more troubling? This wasn’t a recent discovery. The LDH had access to this data as early as August 2023, but didn’t act until April 2025, nearly two years later.
LDH's Delayed Response
LDH’s sluggish response raises significant concerns. In official statements, the department cited “system limitations” and backlogs in eligibility reviews as the primary causes for the delay. But even after two years, LDH’s corrective action plan only proposes removing 9,000 of the 22,000 ineligible individuals identified.
That means more than half of those wrongly receiving benefits are still in the system—and still costing taxpayers.
Citizens for a New Louisiana Sounds the Alarm
Thankfully, groups like Citizens for a New Louisiana have been doing the hard work of digging through reports and sounding alarms that the government itself often ignores. This isn’t their first rodeo.
Earlier this year, the group uncovered a $26,752 payment made by the town of Carencro for sidewalk repairs that were never completed—a small example compared to the Medicaid debacle, but emblematic of a bigger pattern: Louisiana’s government doesn’t just waste money—it often has no idea where it’s going.
Their consistent reporting has become one of the only reliable sources of accountability in a state where corruption and neglect are still all too common.
The Deafening Silence from Republican Leaders
What may surprise voters the most is not the waste itself—it’s the deafening silence from Republican lawmakers who campaigned on promises of reform, fiscal conservatism, and good government.
This legislative session, while working to address a so-called fiscal cliff, many of those same Republicans supported new taxes and revenue increases, instead of first confronting the hundreds of millions being flushed down bureaucratic drains.
Why hasn’t the LDH faced serious consequences? Why hasn't a full forensic audit been launched? Why isn’t there more public outrage from legislators?
It’s hard to escape the conclusion that, despite wearing different pins on their lapels, too many elected officials in Louisiana have grown comfortable with the same old status quo.
Time for a Reckoning
The $103 million Medicaid debacle should serve as a rallying cry for voters, watchdogs, and principled legislators who are tired of being told the only solution is to raise taxes or cut services. Before any more sacrifices are asked of hardworking Louisianans, the state must first get its own house in order.
That means:
Demanding full audits of all major agencies.
Requiring public reporting of all corrective action plans.
Supporting watchdog organizations like Citizens for a New Louisiana.
And holding elected officials—regardless of party—accountable for what they do (or fail to do) when waste is exposed.
Final Word
Louisiana doesn’t have a money problem—it has a management problem. And unless voters and civic groups step up, the cycle of waste, excuses, and inaction will continue.
But thanks to groups like Citizens for a New Louisiana, the truth is becoming harder to ignore.
The question now is: Will anyone in power actually do something about it?
Call to Action:
If you’re tired of seeing your tax dollars misused and want to hold Louisiana’s leaders accountable, follow the work of Citizens for a New Louisiana, share this article, and reach out to your local representatives. Demand reform—not just lip service.
