ALBANY, N.Y. (AP) — New York auditors say the state's Medicaid system made up to $12.1 million in inappropriate payments last year, including $2.3 million in managed care payments for dead patients.

Auditors say other payments went for recipients dropped from long-term care coverage.

About $2.1 million was recovered during the auditors' field work.

The state health department says it's pursuing other overpayments.

Medicaid spending for more than 6 million low-income New Yorkers this year is expected to exceed $63 billion, half of it federally funded.

According to the audit report, claims are processed and paid weekly, averaging about 7 million claims and more than $1 billion in payments to providers.

Auditors say they identified 119 dead people enrolled in Medicaid and 1,177 enrollees who died and weren't automatically removed.

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[STORY BY: THE ASSOCIATED PRESS]

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