It's a compliance issue. The incentives are financial. Producing the records would uncover a pattern of pervasive false claims, jeopardizing significant levels of federal funding to the state.
Here is a federal review of Medicaid payments for services claimed for deceased beneficiaries. The probability that there were foster care billing after the deaths of these children is plausible.
Review of Medicaid Payments for Services Claimed for Deceased Beneficiaries in California
Review of Medicaid Payments for Services Claimed for Deceased Beneficiaries in California
http://beverlytran.blogspot.com/2010/09/fraud-lies-legislative-cover-ups-in.html
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