Corporate Compliance

California incorrectly paid Arizona Medicaid beneficiaries

Healthcare Auditing Weekly, May 6, 2008

California made Medicaid payments for beneficiaries who should not have been eligible in California because they were eligible in Arizona, according to an OIG report. State Medicaid agencies must establish eligibility when they receive notice about a beneficiary's change of information that may affect eligibility. California did not share all available eligibility information with Arizona and as a result, for the period July 1, 2005, through June 30, 2006, the OIG estimates that the state incorrectly paid $154,470 for Medicaid services provided to beneficiaries.

The OIG recommended that California work with Arizona to share available Medicaid eligibility information, with which California generally agreed, in order to

  1. determine beneficiary eligibility status, and
  2. reduce the amount of payments made on behalf of beneficiaries residing in Arizona.

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