Review of Medicaid School-Based Services in Kansas-Bundled Rate Development

EXECUTIVE SUMMARY :

Our objective was to determine whether Kansas developed the payment rates for Medicaid school-based health services pursuant to Federal requirements and the State plan.  Kansas did not develop the payment rates for Medicaid school-based health services pursuant to Federal requirements and the State plan.  Kansas used incorrect indirect cost rates and service utilization data to develop the payment rates.  The payments to school districts for FYs 1998-2003 were incorrect, and Kansas received $18.5 million of overpayments.  

We recommended that Kansas refund $18.5 million to the Federal Government, calculate and refund all overpayments that occurred subsequent to our audit period, and develop and implement adequate internal controls to ensure that future Federal claims for school-based services are consistent with Federal requirements and the State plan.  In its comments on our draft report, Kansas concurred with the findings and two of the recommendations.  Kansas did not address our recommendation to calculate and refund all overpayments that occurred subsequent to our audit period.