The state paid insurers at least $7.3 million, consisting of approximately $3.8 million in federal funds, for services for deceased Colorado residents.

Colorado is the latest state found to have paid insurance companies to handle care for Medicaid recipients who had died, according to a new report from the U.S. Department of Health and Human Services’ Office of the Inspector General.

Colorado's Medicaid office says the Social Security system is riddled with errors and the state disputes that all of those 9,000 patients are actually dead.