GAB Decision 701
November 7, 1985
New Jersey Department of Human Services;
Garrett, Donald F.; Settle, Norval D. (John) Teitz, Alexander G.
Docket No. 85-202
DECISION
The New Jersey Department of Human Services (State) appealed
the
disallowance of $87,362 in federal financial participation by the
Health
Care Financing Administration (HCFA) under Title XIX (Medicaid) of
the
Social Security Act. The disallowance was based on the
State's
Quarterly Statement of Expenditures for the quarter ended December
31,
1984, dated March 20, 1985. The basis for the disallowance was that
the
State had not credited the federal government for any part of
the
"penalty interest" the State received when it recovered
overpayments
from providers of Medicaid services. HCFA contended that
such interest
constituted an applicable credit within the meaning of Office
of
Management and Budget Circular A-87 and that, accordingly, the
federal
government was entitled to its share in the interest.
The State acknowledged that this identical issue was addressed in
Board
Docket No. 83-115, decided in New Jersey Department of Human
Services,
Decision No. 480, November 30, 1983. The State is currently
appealing
Decision No. 480 in United States District Court, and appealed this
case
to preserve its rights in the event Decision No. 480 should be
reversed.
The State admitted that this case does not present any material
issues
of fact which distinguish it from Board Docket No. 83-115 and
raised no
objection to the Board's proposal to issue a summary decision in
this
appeal. The State submitted no new argument why Decision No. 480
was
wrong.
We therefore sustain the disallowance of $87,362, based on Decision
No.
480, which we incorporate herein.
JANUARY 14, 1986