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February 24, 2010

State DHHS sues feds

By The Mainebiz News Staff

The state's Department of Health and Human Services is asking the court to review a decision made by its federal counterpart in a dispute involving nearly $30 million in Medicaid funds.

In a complaint filed Monday in U.S. District Court in Bangor, the state's DHHS called for the court to overturn a decision made by the U.S. DHHS that disallowed $27.9 million in case management funds for children in the state's Medicaid program, called MaineCare, according to the Bangor Daily News. The state is fighting a 2007 audit by the federal DHHS that found Maine DHHS had overstated expenditures associated with the services and requested the state repay the funds. The state appealed the decision in 2008, saying all services in question were properly billed under Medicaid guidelines, but lost the appeal.

If Maine DHHS loses the case, the state could be required to repay the money. DHHS Commissioner Brenda Harvey told the paper she expected the state to win the case and no plans had been made on how to repay the money if necessary.

Go to the article from the Bangor Daily News >>

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