US
Office of Inspector General, Department of Health and Human Services
Published May 2024

Colorado's Program Integrity Section Reporting of Medicaid Overpayments

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Overall Conclusion

Colorado did not report and refund the correct Federal share of Medicaid overpayments identified by its Program Integrity Section during Oct 1, 2014 through Dec 31, 2020; 80 of 403 cases contained unreported or incorrectly reported amounts, with late reporting and misused feeder forms indicating gaps in internal controls and procedures.

Source Document

Audit Scope

Period October 1, 2014 through December 31, 2020; review of 403 Medicaid overpayment cases (out of 956 total) with total overpayments of $28,442,635; focus on reporting to CMS via Form CMS-64 and related feeder forms.

Key Findings Summary

1

Colorado did not report and refund the correct Federal share of Medicaid overpayments identified by its Program Integrity Section during October 1, 2014, through December 31, 2020.

2

The State did not report Medicaid overpayments on the correct feeder forms (CMS-64.9C1 for recovered within timeframes and CMS-64.9OFWA for uncollected within timeframes).

3

The State's policies and procedures were not adequate to ensure timely and correct reporting; staff did not understand correct form usage.

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AI-Assisted

Generated by gpt-5-nano

AI Scope Summary

This audit builds on prior reviews by evaluating whether Colorado consistently reports and refunds the correct Federal share of Medicaid overpayments, identifies gaps in reporting forms and timelines, and recommends improvements to policies, procedures, and coordination with CMS to prevent future underreporting and delays.

AI-Generated Insight

The audit reveals significant weaknesses in Colorado's Medicaid overpayment reporting controls, including misapplication of Form CMS-64 feeder forms, late filings, and gaps in tracking and recovering federal shares. Strong corrective action and CMS coordination are required to ensure timely and accurate reporting and refunds, including calculating any owed interest.