OIG Publishes Report on Alabama’s School-Based MAC Program

The federal Office of Inspector General (OIG), an agency charged with reviewing more than 100 Health and Human Services programs, has published a report on Alabama’s School-Based Medicaid Administrative Claiming program.

OIG is recommending that Alabama return all federal reimbursements received for the 2010-2012 fiscal years, $75.3 million, predominantly because the state did not have an approved Cost Allocation Plan in place for the program at the time these costs were claimed. The state agency’s Random Moment Sampling (RMS) system, used to calculate MAC program costs in Alabama, was also found to be statistically invalid and without adequate support to validate the sample results.

Alabama’s Medicaid agency disagrees with OIG’s findings and has detailed their responses in a letter to the federal agency included in the official report.

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Read a summary of OIG’s Alabama MAC program report.

Read the complete OIG report, “Alabama Claimed Millions in Unallowable School-Based Medicaid Administrative Costs.”