State Audit of California’s Department of Health Care Services Approved

On August 14, the Joint Legislative Audit Committee approved an audit of the Department of Health Care Services (DHCS) related to their administration of both the school MAA and LEA Billing Option programs. The audit was requested by the office of State Senator Carol Liu, who has followed the ongoing school MAA deferral issue and its devastating impact on California schools for the past two years.

As outlined in Senator Liu’s request, the audit should “determine the extent to which the necessary administrative controls and structures are in place to ensure that California schools receive the fully allowed federal Medicaid funding for school-based outreach, enrollment and health services while keeping costs at a minimum.”  In addition to investigating the general structure and realized potential of the school MAA and LEA Billion Option programs, the audit will also take a close look at the design, implementation, and handling of the Reasonableness Test Criteria (RTC) process that schools have been required to comply with in order receive deferred reimbursements. It is important to note that this is an internal state audit of the Department of Health Care Services, not an audit of the programs or the school districts that participate in them.

Senator Liu’s office expects that the state audit of DHCS will take at least 8-10 months and result in recommendations for changes and improvements. We will track this issue closely as it progresses.

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View our Issue Analysis on the Federal Deferral of California’s School MAA Claims…

Visit the California State Auditor website…