AUSTIN, Texas, July 9 (UPI) -- An audit that revealed a $20 million overpayment is the latest allegation of mismanagement to hit Texas social service agencies in recent months.
State Auditor Lawrence Alwin reported Thursday the state overpaid its vendor for the state's Child Health Insurance Program, the Dallas Morning News reported. One-fourth of the money went to a subcontractor who had no employees.
CHIPS is the health insurance program for the children of families who can't afford private health insurance, but make too much money to qualify for Medicaid.
The same program was slashed by the Legislature last year to help cover a $10 billion budget gap.
State Rep. Garnet Coleman, D-Houston, said the $20 million would have covered about 16,500 children for a year.
Republican Gov. Rick Perry's spokeswoman called the finding "more than disconcerting. It is inexcusable."
Perry has already ordered reviews of the agency that is supposed to protect the state's senior citizens and the agency that investigates child abuse.
