Corporate Compliance

GOV’T AUDIT INSIDER: Inadequate internal controls at Iowa rehab facilities

Healthcare Auditing Weekly, October 26, 2004

An estimated $3.3 million in Medicaid claims from the Iowa Rehabilitative Treatment Services Group Care Program for fiscal year 2001 did not meet reimbursement requirements, says an Office of Inspector General (OIG) audit report. An OIG sample of 100 claims revealed that 46 did not comply with federal and state criteria, and 16 contained more than one error. The errors were in therapy and counseling services, documentation errors, and nonrehabilitative services. The OIG recommended that Iowa refund the $3.3 million to the federal government and strengthen policies and procedures to comply with the state plan, and state and federal requirements. During the audit, the OIG did the following:

  • Selected a random sample of 100 claims from a population of 18,141 Group Care Claims for federal fiscal year 2001

  • Reviewed federal and state laws, regulations, and guidelines, and applicable sections of the Iowa state plan

  • Held discussions with CMS regional office personnel, state officials, and contractors

  • Obtained data files for the claims and reconciled the claim amounts to the CMS-64 reports

  • Analyzed supporting documentation for the 100 sample claims

    Click here to read the audit report, "Audit of Medicaid Claims for Iowa's Rehabilitative Treatment Services Group Care Program," (A-07-02-03026), issued September 3.

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