California State Auditor Recommends SMAA Program Changes to Legislature

This morning, the California State Auditor’s office issued a report to the state legislature which includes two recommendations for changes to the School-Based Medi-Cal Administrative Activities (SMAA) program.

These recommendations stem from an audit of the California Department of Health Care Services’ (DHCS) oversight and administration of the SMAA program during the recent and tumultuous federal payment deferral.

The State Auditor’s recommendations to the Legislature were:

  1. Streamline the organizational structure of the SMAA program to allow LEAs to submit reimbursement claims directly to DHCS. Currently, the program utilizes regional agencies, Local Education Consortium (LEC) and Local Governmental Agencies (LGA), as pass-through entities.
  2. Require DHCS to prepare an annual report on the SMAA program, similar to the annual report required for the LEA Medi-Cal Billing Option program.


These recommendations have also been made directly to DHCS as part of the State Auditor report on their oversight and administration of the SMAA program, but would require legislative action to be enacted.