Connecticut Generally Implemented Recommendations From Prior Review of Medicaid Payments for Clinical Laboratory Services

The Connecticut Department of Social Services (State agency) implemented the first recommendation from our prior audit. Specifically, the State agency made an adjustment on its next quarterly report of expenditures for $2.8 million ($1.4 million Federal share). In general, the State agency implemented our prior audit's second recommendation to ensure that amounts claimed for laboratory services and submitted for Federal reimbursement do not exceed the Medicare fee schedule amounts. However, for some services the State agency paid providers more than the payment amounts in the Medicare fee schedule. As a result, the Federal reimbursement claimed by the State agency exceeded the rates allowed by Federal and State requirements by $564,000 ($335,000 Federal share).