A report by an independent federal auditor shows regulations are unable to ensure that medical providers banned from a Medicaid program in one state are not taking part in another state's program. The report is set to release on Wednesday.

The illegal act of banned providers creates a situation wherein state Medicaid programs for the poor and disabled become prone to fraud, waste and abuse. The study has made it crystal clear that states are struggling to take a high road of communication with one another.

The US Department of Health and Human Services Office of the Inspector General (OIG) conducted the study, finding that half of the states failed to terminate providers enrolled in privately run Medicaid managed care programs.

It also found that some do not want to go ahead with the termination of providers holding licenses from a medical board.

“If a provider has been terminated by a state, that is a red flag, because it would indicate there was a problem either in billing or the way they handle patients. Do states really want to trust beneficiary care to someone who has problems like that?” said Deborah Cosimo, team leader for the report.

A Reuters investigation also previously found that 1,800 providers banned by the federal Medicare program for the elderly or a state’s Medicaid program easily billed elsewhere in 2014.

It’s mandatory for all states to terminate providers banned by another state for reasons related to fraud, integrity or quality under the Affordable Care Act, which was implemented in 2011.

Kevin Golladay, OIG regional inspector general for Region VI, that the government is at fault for not being able to keep banned providers out of the program.