Medicaid program; reduction in error rate tolerance; Medicaid quality control program--HCFA. Final rule

This final rule implements the provisions of section 133 of the Tax Equity and Fiscal Responsibility Act of 1982 (Pub. L. 97-248). Under these regulations, Federal financing participation will be disallowed to the extent that a State has a Medicaid eligibility payment error rate (as measured by the Medicaid quality control system) that exceeds the statutorily mandated three-percent national standard for any of the three quarters beginning April 1, 1983 and ending December 31, 1983. The regulations further provide that we will project a payment error rate for each State for each of these three quarters and will reduce the State's quarterly grant award (based on its estimated expenditures) to the extent that the anticipated error rate exceeds the three-percent national standard.