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Massachusetts Medicaid Payments to Essex Park Rehabilitation and Nursing Center Did Not Always Comply With Federal and State Requirements

The Massachusetts Executive Office of Health and Human Services, Office of Medicaid (State agency), generally made Medicaid payments in accordance with Federal and State requirements to Essex Park Rehabilitation and Nursing Center (Essex Park). However, the State agency did not always adjust its Medicaid per diem payments to Essex Park by the amount of beneficiaries' cost-of-care contributions from resources such as Social Security and pensions. As a result, the State agency overstated its Federal claim by a total of approximately $28,000 ($16,000 Federal Share). We attributed the incorrect Medicaid payments to clerical and billing errors.