Federal officials are asking New York to do some explaining after a newspaper reported that Medicaid is spending $4,556 per person daily to support residents of nine state institutions.

In a letter sent to state health officials earlier this week, the Centers for Medicare & Medicaid Services is asking New York to provide details about reimbursement rates at the facilities. At $1.6 million per year for each of 1,400 residents, the rates charged are estimated to be the highest in the nation.

The federal government matches state contributions to Medicaid spending, so half of the money spent is coming from Washington.

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New York officials are being asked to justify how they establish the high rates and provide breakdowns for spending at each institution.

When asked about spending last month, state officials said not all of the money goes to individuals living in institutions even though that is how it’s reported. Rather, some of the funds are used to support other programs for residents with disabilities, reports the Poughkeepsie (N.Y.) Journal. To read more click here.