Alabama Medicaid Agency to contest $96 million in federal audit findings

Federal auditors have recommended that the Alabama Medicaid Agency reimburse the federal government $96 million involving two programs.
The recommendations, made earlier this summer, went to the federal Centers for Medicare and Medicaid Services, which can seek payment from the state.
So far, CMS has not sent demand letters to the state, according to Medicaid.
The budget for fiscal year 2017, which starts Oct. 1, is not expected to be affected, Medicaid says.
The Office of Inspector General conducted the audits.
In July, it recommended that Alabama refund the federal government $21 million related to hospital reimbursement and the calculation of “certified public expenditures.”
Medicaid disagreed with the audit findings and plans to continue to work with CMS on the issue.
Also in July, auditors recommended that the state refund $75 million to the federal government for school-based administrative costs.
Medicaid “intends to contest this finding vigorously,” the agency said in an email.
The costs …
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