Review of Michigan's Reporting Fund Recoveries for State Medicaid Programs on the Form CMS-64 for the First Quarter 2010

Our review found that for the quarter ended December 31, 2009, Michigan did not report $3 million ($2.2 million Federal share) in Medicaid overpayments in accordance with Federal requirements because of a clerical error. States are required to refund the Federal share of Medicaid overpayments and to report overpayments quarterly on Form CMS-64. The State did not properly report these overpayments because it had not developed and implemented internal controls to ensure that overpayments were reported on Form CMS-64.

We recommended that the State (1) include unreported Medicaid overpayments of $3 million on Form CMS-64 and refund $2.2 million to the Federal Government and (2) develop and implement internal controls to correctly report and refund the Federal share of identified Medicaid overpayments. The State concurred with our recommendations and said that it had included the $3 million on a subsequent Form CMS-64.