Virginia Did Not Claim Some Medicaid Administrative Costs for Its Medallion 3.0 Waiver Program In Accordance With Federal Requirements

Previous OIG reviews of Medicaid administrative costs found that several States did not always claim administrative costs according to Federal requirements. As part of a Medicaid risk assessment, we noted that Virginia claimed $342.6 million ($220 million Federal share) for Medicaid administrative costs associated with Virginia’s Medicaid Managed Care Medallion 3.0 waiver program for State fiscal years (SFYs) 2016 and 2017. We conducted this audit because of the significant amount that Virginia claimed and because of our previous findings related to Medicaid administrative costs.