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Series: Review of State Uncompensated Care Pools

Announced on  | Last Modified on  | Series Number: W-00-24-31537

OBJECTIVE

Some State Medicaid agencies operate uncompensated care pools (UCPs) under waivers approved by CMS. Section 1115 of Title XIX of the Social Security Act gives CMS authority to approve experimental, pilot, or demonstration projects that it considers likely to help promote the objectives of the Medicaid program. The purpose of these projects, which give States additional flexibility to design and improve their programs, is to demonstrate and evaluate State-specific policy approaches to better serve Medicaid populations. To implement a State demonstration project, States must comply with the special terms and conditions (STCs) of the agreement between CMS and the State. The purpose of the UCPs is to pay providers for uncompensated cost incurred in caring for low-income (Medicaid and uninsured) patients. Through UCPs, States pay out hundreds of millions of dollars to providers and receive Federal financial participation. However, in some States there has previously been little oversight of the payments. We will determine whether selected States' Medicaid agencies made payments to hospitals under the UCPs that were in accordance with the STCs of the waiver and with applicable Federal regulations.

There are 2 projects in this series.

ACTIVE PROJECTS IN THIS SERIES (1)

COMPLETED PROJECTS IN THIS SERIES (1)

Massachusetts

TIMELINE

  • December 1, 2020
    Series Number W-00-24-31537 Assigned
  • December 1, 2020
    Project Announced

    Project A-07-21-07001

  • June 6, 2022
    Project Announced

    Massachusetts - A-04-22-04091

  • February 19, 2025
    Project Complete - A-04-22-04091

    Massachusetts has been marked as complete. This audit resulted in 5 recommendations.

  • Today
    1 Audit In-Progress
  • Est FY2026
    Estimated Fiscal Year for Series Completion

1 REPORT PUBLISHED

25-A-04-047.01 to CMS - Open Unimplemented
Update expected on 01/28/2026
We recommend that the Massachusetts Executive Office of Health and Human Services recover from IMDs and CBDCs $21,606,437 in SNCP payments that exceeded the cost of caring for Medicaid and uninsured patients.

25-A-04-047.02 to CMS - Open Unimplemented
Update expected on 01/28/2026
We recommend that the Massachusetts Executive Office of Health and Human Services correct its $6,239,386 overstatement of CPEs on the CMS-64, which represents the difference between its CPE estimates and the actual uncompensated care provided to uninsured patients for State-owned hospitals.

25-A-04-047.03 to CMS - Open Unimplemented
Update expected on 01/28/2026
We recommend that hte Massachusetts Executive Office of Health and Human Services refund to the Federal government the $13,922,912 Federal share of the total $27,845,823 in SNCP expenditures that did not comply with Federal requirements.

25-A-04-047.04 to CMS - Open Unimplemented
Update expected on 03/30/2026
We recommend that the Massachusetts Executive Office of Health and Human Services develop and implement policies and procedures that instruct personnel to perform interim and final reconciliations required by the STCs.

25-A-04-047.05 to CMS - Open Unimplemented
Update expected on 01/28/2026
We recommend that the Massachusetts Executive Office of Health and Human Services perform reconciliations for the SFYs following our audit period, where the required Medicare cost reports or UFRs are available. In addition, it should refund the Federal share of any oversated CPEs, as well as recover any overpayments to IMDs and CBDCs and refund the Federal share.

View in Recommendation Tracker

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