Medical Assistance Provided by Virginia to Hurricane Katrina Evacuees

Of the nearly $523,000 that Virginia claimed for services provided to Hurricane Katrina evacuees as of March 31, 2007, $73,000 did not comply with the State's approved hurricane-related section 1115 demonstration project.  Under section 1115 of the Social Security Act, the State was allowed to provide the benefits included in its State Medicaid plan to eligible Hurricane Katrina evacuees for a maximum of 5 months.  The $73,000 included administrative costs that did not pertain to the demonstration project and medical assistance costs that were erroneously reported or that related to services provided to ineligible individuals. We recommended that the State refund $73,000 in unallowable reimbursement and revise its waiver reports for Alabama, Louisiana, and Mississippi by our audit adjustment amounts. The State agreed with our recommendation.