Lawmakers look at $29 million federal Medicaid claim from 2008-2014

FRANKFORT, Ky. (WTVQ) – The Medicaid Oversight Advisory Committee, co-chaired by Representative Daniel Elliott of Danville, met this week to highlight the recent audit of school-based Medicaid services.

The audit produced by the federal HHS Office of the Inspector General uncovered that Kentucky claimed $29.4 million in unallowable school-based Medicaid administrative costs between October 2008 and September 2014.

The OIG recommends Kentucky refund the $29.4 million to the federal government and enhance the policies and procedures in place.

The Kentucky Department of Medicaid Services generally disagreed with the OIG’s findings.

Elliott questioned the Department for Medicaid Services representatives on the process for repaying the federal money, if the repayment ends up being necessary.

The Department for Medicaid Services representatives shared there are ongoing discussions with the Centers for Medicare and Medicaid Service (CMS). But if the repayment of federal funds becomes necessary, the money would come from the Kentucky Department of Education dollars.

“I’m concerned about how it would impact education funding, particularly since we have managed to increase spending on education,” said Elliott.

Representative Kimberly Moser of Taylor Mill, chair of the House Health and Family Services Committee, asked the department about their vendors who contract for the school-based payment services.

Moser asked if there had been an internal audit of the billing services used by KDE.

Robin Kinney, Associate Commissioner of KDE, shared there has not been an internal audit on this program by the KDE.

Moser urged the KDE to take a look at having an internal audit to streamline oversight and assist with the process.

“Being efficient would be a prudent use of taxpayer dollars,” explained Moser.