WBRZ - Baton Rouge

Louisiana will pay $122 million back to the federal government, as part of a settlement to repay Medicaid
money federal officials say was misspent years ago.

Lawmakers gave final approval to the repayment plan Tuesday.

The first payment of $30 million is due next week. All the money will come from a state trust fund set aside for elderly care.

The U.S. Centers for Medicare and Medicaid Services said the state violated federal rules in Medicaid payments to certain government-run nursing homes. The claim is one of several against the state that has lingered for years, threatening other federal Medicaid dollars to Louisiana.

The state negotiated a settlement with federal officials about the nursing home overpayment that requires repayment of the $116 million owed, plus $6 million in interest.