Review of Federally Non-Participating Medicaid Costs Claimed by the State of New Jersey to the Disproportionate Share Hospital Program for the period April 1, 1997 through June 30, 2001

EXECUTIVE SUMMARY:

The objective of this audit was to determine if $45,461,490 (Federal share $22,730,745) Medicaid costs claimed by the State of New Jersey, Department of Human Services, Division of Medical Assistance and Health Services (DMAHS) as disproportionate share acute care hospital expenditures were allowable for Federal reimbursement.  These claims, which were developed by a contractor hired by the State on a contingency fee basis, represented the medical expenditures paid by the State for Medicaid beneficiaries and not previously submitted for Federal reimbursement during the period April 1, 1997 through June 30, 2001.  We found that the Medicaid costs claimed by DMAHS as disproportionate share acute care hospital expenditures were allowable for Federal reimbursement.