The Division of Audits with the State Medicaid Departments says Barren River District Health Department was reimbursed for non-allowable medical procedures during fiscal years 1999 and 2000.
Medicaid is requesting a $1.1 million dollar refund from the Health Department.
The department's acting director Donald Houchin says the auditor's claim "changes the rules in the middle of the game."
A dispute resolution meeting is scheduled for Feb. 21 in Frankfort.
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