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Department of Health and Human Services

"Partnership Audit of Medicaid Payments for Oxygen Related Durable Medical Equipment and Supplies - January 1, 1998 through December 31, 2000 Kentucky Department for Medicaid Services, Frankfort, Kentucky," (A-05-02-00063)

March 5, 2003

Complete Text of Report is available in PDF format (691 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This audit was performed jointly with the Kentucky Auditor of Public Accounts under the Office of Inspector Generalís Partnership Plan. The objective of the review was to determine if the State agency was reimbursing Medicaid providers in excess of the State Medicare limits for durable medical equipment (DME) and supplies used to provide oxygen. We determined that, for the three-year audit period ending December 31, 2000, the Medicaid program was overcharged $727,000 (federal share $511,397) for excessive reimbursements to providers of oxygen related DME and supplies.  We recommended that the State refund $511,397 and up date the payment limits for oxygen related DME and supplies on a timely basis.