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Review of Connecticut's Community Based Medicaid Administrative Claim for State Fiscal Year 2004

In our CMS-requested review of community-based Medicaid administrative costs that Connecticut claimed for State fiscal year 2004, we found that the State's $9.3 million claim may not have fully complied with Federal requirements. The State claimed reimbursement from CMS for administrative case management activities provided by contracted organizations. Because the State made omissions and deviations from acceptable practices when calculating its claim and was unable to provide adequate documentation, we were unable to express an opinion on the claim's allowability.

We recommended that the State agency draft its future contracts to identify and properly value the amount of administrative case management activities and work with CMS to determine what portion of the $9.3 million was allowable under Federal requirements. The State generally agreed with our recommendations.