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HRD-81-94 1 (1981-05-29)

handle is hein.gao/gaobabbzb0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE - WASHINGTON, D.C. 20548 HUMAN RESOURCES DIVISION B-203181 MAY 29,1981 The Honorable Richard S. Schweiker I iJ!;j1 III i The Secretary of Health and Human Services 1 15360 Dear Mr. Secretary: Subject: Improving Medicaid Cash Management Will Reduce Federal Interest Costs (HRD-81-94) In our June 10, 1980, report, 1/ we discussed our review of State systems for recovering Medicaid overpayments to providers and for returning the Federal share of these overpayments to HHS. We also communicated our findings to the Administrator of the Health Care Financing Administration (HCFA) in two other reports. 2/ These same findings, as well as others, were reported to HCFA head- quarters and regional officials during several oral briefings. Based on our reports and briefings, HCFA initiated reviews of State Medicaid cash-management systems. As of January 1980, HHS had recouped $41.9 million in Federal Medicaid funds from 14 States and was in the process of recouping $39.2 million from other States. However, in reviewing some States, HCFA regional office staffs ex- amined the State's cash-management system without attempting to identify possible recoupable funds. While we believe identifying system deficiencies is important, it is also important to identify and recover the Federal share of Medicaid overpayments. Therefore, we made a follow-on review in seven States and the District of Columbia where HCFA reviews did not identify any recoupable funds. During the 12-month period (July 1979 through June 1980) covered by our review: l/Report to the Secretary of Health and Human Services, States Should Intensify Efforts to Promptly Identify and Recover Medicaid Overpayments and Return the Federal Share, HRD-80-77. 2/Our reports dated October 27, 1978, and May 4, 1979. (106189) /O 730

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