Review of North Carolina's Accounts Receivable System for Medicaid Provider Overpayments

For the period October 2004 through December 2005, North Carolina properly reported reclaiming adjustments for previously reported overpayments during the audit period. However, it did not report 749 Medicaid provider overpayment adjustments totaling $816,806 and return the Federal share of $519,312 in accordance with Federal requirements. This failure to report some overpayment adjustments also resulted in a potential loss to the Federal Government of $17,557 in interest.