A review of the Illinois Medicaid program has found that an estimated $12 million was paid for medical services for people who were dead.
Illinois Governor Pat Quinn says that the state will get the money back.
He is also promising tighter controls in the future to stop this from happening again.
The mistakes were brought to light by the Associated Press who obtained a state memo.
The memo shows that there were services provided to roughly 2,900 people after the date of their deaths.