U.S. flag

An official website of the United States government

Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.


The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of the Medicaid Program's Use of Consultants on a Contingency Fee Basis," (A-04-05-00015)

February 27, 2007

PDF File Complete Text of Report is available in PDF format (2.97 mb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


Our objective was to determine the reasonableness and allowability of Medicaid costs claimed for reimbursement by the North Carolina Department of Health and Human Services (the State agency) as a result of contingency fee arrangements with consultants. The State agency overstated its claims for reimbursement by $125,361 (Federal share) for cost report adjustments owing to the use of misclassified expense data during computation of the claim.

We recommended that the State agency refund $125,361. The State agency agreed.