Review of Medicaid Administrative Costs Claimed for the Massachusetts Department of Transitional Assistance

Of the $48.4 million ($24.2 million Federal share) that the Massachusetts Executive Office of Health and Human Services (EOHHS), Office of Medicaid (the State agency) claimed in Medicaid administrative costs for EOHHS, Department of Transitional Assistance, during Federal fiscal years 2006 and 2007 based on the final results of a random moment timestudy, $898,000 ($449,000 Federal share) was misallocated to the Medicaid program as a result of insufficient documentation. In addition, we could not express an opinion on the allowability of the remaining $47.5 million ($23.8 million Federal share) in Medicaid administrative costs because we could not quantify the effect of the State agency's deviations from acceptable statistical sampling methods.