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Audit of Medicaid Components for States in Cycle 1 of CMS's PERM Review

The Improper Payments Information Act of 2002 requires the heads of Federal agencies to annually review programs they administer in order to identify programs that may be susceptible to significant improper payments and estimate the amount of improper payments. The Medicaid program has been identified as a program at risk for significant improper payments. CMS developed the Payment Error Rate Measurement (PERM) program to measure improper payments in the Medicaid program. PERM produces an improper payment rate based on reviews of the fee-for-service, managed care, and eligibility components of Medicaid. In 2017, CMS published a new, final rule implementing substantive changes to the PERM program that, among other things, were aimed at improving program integrity and promoting State accountability through policy and operational improvements. We will assess the adequacy of the PERM program by determining the accuracy of determinations for the eligibility, fee-for-service, and managed care components of the PERM error rate.

Announced or Revised Agency Title Component Report Number(s) Expected Issue Date (FY)
Completed Centers for Medicare & Medicaid Services Audit of Medicaid Components for States in Cycle 1 of CMS's PERM Review Office of Audit Services W-00-20-31540;