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Audit (A-03-12-00204)

Maryland Claimed Medicaid Administrative Costs for Unallowable Remedial and Training Services for the Maryland Poison Center

Executive Summary

Maryland did not comply with Federal requirements when it claimed Maryland Poison Center's remedial and training services as administrative costs of the Medicaid program. The Centers for Medicare & Medicaid Services (CMS) approved Maryland's methodology to claim Poison Center costs even though the costs did not relate to administration of the Medicaid program. However, in its subsequent December 1994 letter to all State Medicaid directors, CMS clarified its position on State claiming of Medicaid administrative costs and specifically excluded remedial services, public education, and provider training from allowable costs. Accordingly, Maryland should have complied with CMS' general instructions in the December 1994 letter by discontinuing the claiming of administrative costs for the Poison Center.

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