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Medicaid program; reduction in error rate tolerance beginning October 1, 1983; Medicaid quality control

    Federal Register
    |August 9, 1983
    PubMed

    Insights

    This rule revises Medicaid regulations on disallowing federal funds to states with Medicaid eligibility error rates above 3%. New rules apply from October 1, 1983, implementing the Tax Equity and Fiscal Responsibility Act.

    Area of Science:

    • Health Policy
    • Public Administration
    • Healthcare Regulation

    Background:

    • Current Medicaid regulations address federal financial participation based on state eligibility error rates.
    • A 3-percent national standard for Medicaid eligibility payment error rates is currently in place.
    • The Tax Equity and Fiscal Responsibility Act of 1982 mandates changes to these regulations.

    Purpose of the Study:

    • To propose revisions to existing Medicaid regulations.
    • To establish new regulations regarding the disallowance of federal funds.
    • To implement specific provisions of the Tax Equity and Fiscal Responsibility Act of 1982.

    Main Methods:

    • The proposed rule modifies the application period for the existing 3-percent standard.
    • New regulations are established for periods commencing October 1, 1983.
    • The rule directly implements Section 133 of the Tax Equity and Fiscal Responsibility Act (Pub. L. 97-248).

    Main Results:

    • Federal financial participation may be disallowed for states exceeding the Medicaid eligibility error rate standard.
    • The existing 3-percent standard will apply retroactively only until September 30, 1983.
    • New regulatory framework for error rate disallowance will be effective from October 1, 1983.

    Conclusions:

    • The proposed rule aims to enhance fiscal responsibility within the Medicaid program.
    • Implementation of the Tax Equity and Fiscal Responsibility Act will refine error rate management.
    • States must adhere to updated regulations to ensure continued federal financial participation.

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