Audit of Arizona's Medicaid Payments for Skilled Professional Medical Personnel Reimbursed at the Enhanced Rate - October 1, 2002, Through September 30, 2003

EXECUTIVE SUMMARY:

Our objective was to determine whether the Arizona Health Care Cost Containment System (Arizona) properly claimed Federal Medicaid funding at the enhanced rate for skilled professional medical personnel for the period October 1, 2002, through September 30, 2003.  Arizona generally complied with Federal regulations when claiming Federal Medicaid funding at the enhanced rate for skilled professional medical personnel.  We noted that Arizona claimed a small amount of overhead costs that was not eligible for reimbursement at the enhanced rate.  Arizona's controls did not prevent overhead costs from being claimed for reimbursement at the enhanced rate.  We recommended that Arizona strengthen controls to ensure that overhead costs are not claimed for Federal reimbursement at the enhanced rate.  Arizona officials agreed with our finding and recommendation.