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Special Education Listserv

Subject: Medicaid/MO HealthNet/OIG Audit Finding Related to School District Administrative Claiming (SDAC)

Source: Heidi Atkins Lieberman, Office of Special Education

Intended Audience: School District Administrators and Finance Staff

Date: September 24, 2010

The following memorandum was sent yesterday:

MEMORANDUM TO SCHOOL DISTRICT ADMINISTRATORS AND SCHOOL DISTRICT FINANCE STAFF

From: Ian McCaslin, M.D., M.P.H., Director, MO HealthNet Division, Missouri Department of Social Services

Heidi Atkins Lieberman, Assistant Commissioner, Office of Special Education, Missouri Department of Elementary and Secondary Education

Subject: Medicaid/MO HealthNet/OIG Audit Finding Related to School District Administrative Claiming (SDAC)

On April 9, 2010, school districts were notified on the Special Education List Serve of the audit findings by the U.S. Office of Inspector General (OIG), related to the School District Administrative Claiming (SDAC) program.  See message at:  http://www.dese.mo.gov/divspeced/LS04.09.10-2.htm

The OIG determined that Missouri schools were overpaid $20.5 million.  The Department of Social Services disagrees with $18.3 million of that finding and has informed the federal Department of Health and Human Services of that disagreement.  The agreed upon overpayment of $2.2 million will need to be recouped from the school districts that originally received the funds. 

MO HealthNet has determined district specific recoupment amounts for the agreed upon disallowed charges.  Superintendents for each school district will receive written notification from MO HealthNet identifying the amount of the recoupment within the next thirty days.  MO HealthNet will work with the school districts on repayment plan options to meet the district's needs.  Please watch for the letter in the coming month.

The full report of the audit is available on the OIG website at http://oig.hhs.gov/oas/reports/region7/70803107.asp.