California Schools Receive Refund for Over-Collection of Fees Paid to State

California’s Department of Health Care Services (DHCS) announced this month that school districts participating in the LEA Medi-Cal Billing program have been refunded fee withholds that were over-collected for the 2011/12 and 2012/13 fiscal years.

As a condition of participating in the LEA Medi-Cal Billing program, school districts agree to pay into a Medi-Cal Recovery Fund and cover Audits & Investigations costs through withholds which are removed by DHCS before distributing schools’ federal reimbursement for billed services. Each of these withholds has an annual cap and is supposed to shut off when that cap is met; unfortunately, this hadn’t happened for some years and since there was never a public accounting of the fees collected school districts had to wait until the Department realized this error.

In accordance with California law adopted in 2012, DHCS now conducts an annual accounting of withholds and presents this to the LEA Medi-Cal Billing workgroup that meets every two months in Sacramento to discuss improvements to the billing program.

The 2012/13 fiscal year accounting of withholds and refunds is available here on the DHCS website. An accounting of fiscal year 2013/14 withholds is anticipated in February 2015.