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Massachusetts Medicaid Payments to Alliance Health of Massachusetts, Inc., Did Not Always Comply With Federal and State Requirements

The Massachusetts Executive Office of Health and Human Services, Office of Medicaid (State agency), did not always adjust its Medicaid per diem payments to Alliance Health of Massachusetts, Inc., by the amount of beneficiaries' cost-of-care contributions from resources, such as Social Security and pensions. As a result, the State agency's Federal claim was overstated by a total of $16,000 ($9,000 Federal share). We attributed the incorrect Medicaid payments to clerical and billing errors.