Kentucky Claimed Millions in Unallowable School-Based Medicaid Administrative Costs

In prior audits of school-based administrative and health services costs that States allocated to Medicaid using random moment sampling (RMS), we identified significant overpayments. After conducting a risk assessment ofKentucky’s Medicaid AdministrativeClaiming program, we determined that Kentucky claimed significant Medicaid school-based administrative costs based on its RMS. We conducted this audit because of the significant amount claimed and our prior findings related to costs that States allocated to Medicaid using RMS.Our objective was to determine whether Kentucky claimed school-based Medicaid administrative costs in accordance with Federal requirements.