Review of Kansas's Accounts Receivable System for Medicaid Provider Overpayments

EXECUTIVE SUMMARY:

The objective of this audit was to determine if the State agency reported Medicaid provider overpayments according to Federal regulations.  The State agency did not report all Medicaid provider overpayments in accordance with Federal regulations and its policies and procedures were not sufficient to ensure the timely reporting of all overpayments.  As a result, the State agency delayed returning overpayments totaling $2,395,384 ($1,478,950 Federal share).  Of that amount, the State agency has not yet reported or returned to the Federal Government overpayments totaling $858,669 ($537,210 Federal share).  he State agency should return the Federal share of overpayments totaling $537,210 to the Federal Government as soon as possible and strengthen policies and procedures to ensure all overpayments are reported in accordance with Federal regulations.  The State agency agreed with our findings and recommendations.