Review of Medicaid Excluded Providers in Iowa

The Iowa Department of Human Services (State agency) did not have adequate internal controls to prevent some Medicaid payments for items and services furnished, ordered, or prescribed by an excluded individual or entity. Specifically, for the period January 1, 2006, through December 31, 2008, the State agency made $73,000 ($45,000 Federal share) in improper payments.

We recommended that the State agency refund the $45,000 to the Federal Government and strengthen internal controls to prevent excluded providers from participating in the Medicaid program. The State agency concurred with our recommendations and described corrective actions that it had implemented or planned to implement.