Corporate Compliance

OIG: Arkansas should refund $238,928 to the feds

Healthcare Auditing Weekly, March 7, 2006

The OIG is asking Arkansas to repay the federal government $238,928 in Medicaid provider overpayments.

This recommendation comes as part of a multistate audit of state-reported Medicaid provider overpayments.

The audit found that the state did not report $313,538 (including a federal share of $238,928) in provider overpayments and was late reporting $229,657 (including a federal share of $175,581). The OIG recommended that the state

  • include unreported overpayments totaling $313,538 on the CMS-64

  • refund the $238,928 federal share

  • strengthen policies and procedures to ensure all future overpayments are reported in accordance with federal regulations

    The state agreed with the recommendations.

    To conduct the audit, the OIG

  • reviewed relevant regulations and policies

  • learned the state agency's processes for recording, aging, and reporting provider overpayments

  • analyzed the quarterly CMS-64 reports along with supporting documentation and identified overpayments totaling $4.2 million

  • determined whether there were additional provider overpayments that should have been reported on the CMS-64 for the audit period

  • calculated the potentially higher interest expense to the federal government for those provider overpayments that were not reported on time

      Click here to read the audit report, "Review of Arkansas's Accounts Receivable System for Medicaid Provider Overpayments," (A-06-05-00039) issued January 30, 2006.

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