Corporate Compliance

Gov’t audit insider: $5 million paid to deceased beneficiaries

Healthcare Auditing Weekly, July 6, 2004

The state of Tennessee dolled out $5 million to deceased Medicaid beneficiaries, according to an OIG audit report released June 18. The OIG audited records from October 1, 1998 to September 30, 2001.

The auditors performed the following tasks to better understand Tennessee's process for identifying and recovering payments to deceased beneficiaries:

  • Searched the Death Master File for Tennessee Medicaid beneficiaries enrolled and deceased during the audit period
  • Chose a sample of 200 from the 66,416 beneficiaries they located in the Master File
  • Located and reviewed the claims of the selected beneficiaries filed between the time of death until the start of the audit period
  • Projected the calculations derived from the sample to the 66,416 beneficiaries found in the Master File

Tennessee paid 602 claims for 186 of the 200 dead beneficiaries in the sample, the OIG reports. The OIG did not review the state's overall internal control structure in its audit.

Click here to read the audit report called "Medicaid Payments for Deceased Beneficiaries in Tennessee (A-04-02-07020)."

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