Two state employees have been fired after the Department of Health and Human Services said they discovered workers knowingly provided Medicaid coverage to people who were not eligible.

Department officials would not provide details of the alleged fraud, except to say that the abuse dates to 2001.

State Law Enforcement Division chief Robert Stewart said Tuesday his agency has been asked to investigate. HHS said arrest warrants were pending, but Stewart did not know about them.

A Medicaid eligibility supervisor, whose name was not released, alerted officials of the fraud. HHS created teams of investigators to conduct unannounced audits at state eligibility offices.

The agency will immediately review all Medicaid cases the two employees handled. Medicaid is the federally subsidized health insurance for the poor, elderly and disabled.

“This is part of a crackdown on any crimes involving Medicaid,” agency director Robbie Kerr said. “We want to be sure the right people are getting the proper services.”

The news comes as Medicaid clients face an uncertain future. Medicaid is already one of the fastest-growing expenses for state government. When the General Assembly convenes in January, lawmakers will begin looking for nearly $200 million in new money to cover the existing programs, with no room for Medicaid growth.

Part of HHS’ mission is to determine whether individuals are eligible for Medicaid.

A spokesman for Gov. Mark Sanford said the firings show the administration is working to be more accountable.

“We’re pleased, given the budget crisis we’re up against, that Robbie Kerr and his folks are being proactive and ramping up their efforts to make sure the right people are getting the service they need,” Sanford press secretary Will Folks said.

Reach Gould Sheinin at (803) 771-8658 or asheinin@thestate.com.