Ohio Medicaid Audits Recommend Changes, Find $42M In Possible Overpayments

Ohio should make more than 100 changes to its Medicaid program, including greater use of health information technology systems and appointing a Medicaid fraud inspector, according to a report released Tuesday by Ohio Auditor Betty Montgomery (R), the Dayton Daily News reports (Bischoff, Dayton Daily News, 12/19). According to Montgomery, the changes could result in at least $400 million in annual savings. The audit found that the program’s current computer system does not let state and local agencies share information about Medicaid services and makes it difficult to determine whether services residents receive are working or if they should be changed (Welsh-Huggins, AP/Middletown Journal, 12/19). The audit also recommends that the state:

* Require county agencies to use electronic documents for Medicaid beneficiaries;

* Require Medicaid providers to electronically submit payment claims;

* Test the use of electronic prescriptions; and

* Set nursing home reimbursement rates through administrative rules rather than legislative changes (Dayton Daily News, 12/19).

Contractor Audit
Also on Tuesday, Montgomery released a contractor’s study of Medicaid providers that found $42 million in possible overpayments were made between mid-2003 and the end of 2004, the Cleveland Plain Dealer reports. According to the report, nearly $10 million of the overpayments were made to nursing homes for services after beneficiaries had died. Montgomery said the study found that $4.3 million in overpayments could immediately be recouped by the Ohio Department of Job and Family Services and that an additional $36.9 million could be recouped after further investigation. About $1.2 million in overpayments were made because Medicaid does not have rules regarding multiple laboratory tests, according to Montgomery. Job and Family Services spokesperson Jon Allen said the agency in 2005 revised the Medicaid billing system to prevent overpayments to nursing homes. The department is scheduled to seek proposals to develop a new Medicaid information system (Rollenhagen, Cleveland Plain Dealer, 12/20).

“Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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