Partnership Audit of Medicaid Payments for Oxygen Related Durable Medical Equipment and Supplies - January 1, 1998 through December 31, 2000 Kentucky Department for Medicaid Services, Frankfort, Kentucky

EXECUTIVE SUMMARY:

This audit was performed jointly with the Kentucky Auditor of Public Accounts under the Office of Inspector General's Partnership Plan. The objective of the review was to determine if the State agency was reimbursing Medicaid providers in excess of the State Medicare limits for durable medical equipment (DME) and supplies used to provide oxygen. We determined that, for the three-year audit period ending December 31, 2000, the Medicaid program was overcharged $727,000 (federal share $511,397) for excessive reimbursements to providers of oxygen related DME and supplies.  We recommended that the State refund $511,397 and up date the payment limits for oxygen related DME and supplies on a timely basis.