OIG: State Medicaid overpayments linked to little internal control

The state of Delaware did not comply with the federal Medicaid overpayment reporting requirements, according to a June report released yesterday by the Office of the Inspector General. Of the $16.29 million Medicaid overpayments collected, the state of Delaware failed to report $16.27 million. Delaware incorrectly calculated its federal share based on an inaccurate federal medical assistance percentage and lacked controls that would guarantee correct overpayment reporting, OIG said.

The OIG recommended the state refund $10 million to the federal government, as well as identify and report any previously unreported overpayments. The OIG also urged the state to implement controls to ensure overpayments are correctly reported in the future. Summary