Ohio Medicaid Releases CMS Audit; CMS Approves Corrective Action Plan

Following up on her Tuesday, Jan. 14 release detailing the "mess" the Ohio Department of Medicaid (ODM) currently faces stemming, in large measure, from an error-ridden information technology system that has snarled eligibility determinations and led to substantial payment errors (see The Hannah Report, 1/14/20), ODM Director Maureen Corcoran Friday released results from the federal Centers for Medicare and Medicaid Services (CMS) FY19 Payment Error Rate Measurement (PERM) audit and the department's corrective action plan.

In her cover letter, CMS Deputy Director Anne Marie Costello notes her agency's approval of the plan and acknowledges "notable progress" the state agency has made over the last year to address many of the issues. She went on to note, "Under your leadership and direction, we received the state's commitment to address the longstanding eligibility and enrollment problems, beginning with a reduction of the application backlog. Further, Ohio was proactive in developing and submitting a plan to address the issues CMS identified. Specifically, issues related to:

- "Application processing. …

- "Timely processing of eligibility redeterminations. …

- "Time processing of beneficiary changes in circumstances."

ODM explains in an executive summary provided with the day's release that it has uncovered "a multitude of issues of Ohio Benefits -- the technology system designed to manage Medicaid and CHIP [Children's Health Insurance Program] eligibility and enrollment determination process." Those problems include the following:

- "Flaws allowing system users to inadvertently overwrite archived data when new or updated eligibility information is entered.

- "Restricted access to stored data tables prohibiting caseworkers, auditors and ODM staff from gathering requisite eligibility determination documents to satisfy audit requirements.

- "Erroneous, system-generated event management triggers that altered critical dates and deadlines, resulting in both late and voided eligibility authorizations and renewals.

- "Duplicate, system-generated member identifications prompting dual provider payments and undetected financial liabilities.

- "System inability to electronically manage and track critical tax filings and reporting with the Internal Revenue Service.

- "Technical shortfalls that inhibit system access and navigation to those with vision and English language deficits."

ODM goes on to explain that CMS uses this audit to determine improper payments -- and any repayments the state may be liable for.

Both agencies continue to work together on timelines for improvements over the next several months.

Costello did write that, "we believe the strategies that Oho has included in its plan will introduce sustainable improvements to state systems and operations to ensure that the state conducts timely and accurate determinations at application and renewal, that only eligible individuals are enrolled, and that the state appropriately claims federal matching dollars for state expenditures. To that end, the plan will also address issues identified in the FY19 Payment Error Rate Measurement (PERM) results and help to decrease improper payments. The state's work toward compliance with the issues outlined in the [corrective action plan] supports the work to improve future PERM results."

The department does explain that, "CMS clarifies in its report that PERM findings do not necessarily represent expenses that should not have occurred. Instead, it measures the agency’s performance in meeting timely administrative deadlines, obtaining and securing qualifying documentation and accurately managing renewals and redeterminations."

Documents including the day's release, the Ohio Medicaid Executive Summary, the CMS letter from Costello and the state's corrective action plan can be found in a consolidated document on the Hannah News website at www.hannah.com>Important Documents and Notices>Library.

Story originally published in The Hannah Report on January 17, 2020.  Copyright 2020 Hannah News Service, Inc.