Media contacts:
Ann Potempa,
Public information officer
(907) 269-7957 office
(907) 240-9158 cell
Sarana Schell,
Public information officer
(907) 269-8041 office
(907) 240-7462 cell
Preparing for PERM
Payment Error Rate Measurement is a review of how accurately all 50 states are billing Medicaid. The nationwide audit beginning this winter promises to have a major impact on Alaska.
Each year in Alaska, Medicaid pays more than $1 billion in medical costs for low-income and often vulnerable Alaskans. The joint state and federal medical assistance program provides a vast array of medically necessary equipment and services, from dental care for children to daily care for our frailest elders.
State and federal lawmakers making tough budget choices want to know that Medicaid payments are being made properly.
One way they check is through various audits, including Payment Error Rate Measurement, or PERM.
PERM is a key audit for Alaska because failure to meet CMS’ standards could result in penalties.
To test states' Medicaid and State Children’s Health Insurance Program, the Centers for Medicare and Medicaid Services (CMS) will randomly examine claims that providers have submitted for payment.
Any Alaska company or nonprofit that gets Medicaid funds may be asked to show records that substantiate a claim it has submitted.
The PERM audit, which began January 2008, looks at bills processed since October 2007.
In an earlier test audit for PERM, many providers either did not send in complete records, or they were late.
If CMS does not get the right records, within the 60 calendar-day deadline, CMS will not have evidence the claim was justified, and will count its payment as a mistake. The state will be required to reimburse CMS, and providers will be required to reimburse the state.
Department of Health and Social Services employees know Medicaid is complicated, and are ready to help providers prepare for PERM.
Alaska’s Medicaid stakeholders must work together to minimize Medicaid billing errors.
Providers are encouraged to gather requested documents as soon as possible to have time to ask DHSS for guidance if necessary.
Providers can ask DHSS leaders to speak about PERM at the providers’ office or professional meeting. Or, they may call technical staff for an audit-preparation-help training session.
The results of the first year's review are expected at the end of 2009.