Review of California's Compliance With Demonstration Project Requirements for Reimbursement of State Costs for Provision of Medicare Part D Drugs (Claims Processed Through the Medicaid Management Information System)

For the $55.8 million in drug claims processed through the Medicaid Management Information System, the California Department of Health Care Services (the State agency) complied with certain provisions of the Medicare "Section 402 Demonstration Application" when claiming drug costs for full-benefit dually eligible beneficiaries. However, the State agency claimed drug costs to both the Medicaid program and the Medicare demonstration project. Subsequently, the State agency adjusted the Forms CMS-64 to remove demonstration project costs.