The HHS Office of Inspector General published two audits in July that found the state’s Medicaid program miscalculated administrative costs by $75.2 million in the period from 2010 to 2012. The audits also claimed the agency miscalculated public expenditures by at least $21.3 million in 2010.
The OIG recommended Medicaid refund CMS $96.5 million. However, Alabama Mediciad officials disagreed with auditors’ findings and vowed to contest the recommendation in September.
So far, CMS has not sent demand letters to the state for repayment, according to Alabama’s Medicaid program.
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