Corporate Compliance

GOV’T AUDIT INSIDER: Kansas overclaimed more than $58 million

Healthcare Auditing Weekly, March 15, 2005

Kansas overclaimed more than $58 million

Between April 1, 2001 and September 30, 2002, Kansas made upper payment limit (UPL) payments to nursing homes that exceeded allowable limits, according to an OIG audit report. As a result, the state overclaimed expenses by $58.3 million. The UPL is an estimate of the amount that would be paid for Medicaid services under Medicare payment principles. The OIG recommends that Kansas reduce the claimed expenses on its CMS-64 quarterly expenditure reports by $58.3 million for the audited period.

During the audit, the OIG did the following:

  • Reviewed federal laws and regulations pertaining to UPLs

  • Interviewed CMS headquarters and regional officials

  • Compared federal regulatory requirements with the methodology for calculating UPLs with Kansas

  • Examined directories of nursing homes

  • Tested the accuracy of underlying Medicaid and Medicare data that Kansas used to calculate UPLs

  • Calculated the excess amount using the quarter ended March 31, 2001

  • Traced the UPL payments calculated under state plan to the form CMS 64 quarterly expenditure reports

    Click here to read the audit report, "Review of Medicaid Upper-Payment-Limit Requirements for Kansas Nursing Facility Reimbursement," (A-07-03-02672) issued February 9.

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