GAB Decision 738
April 9, 1986
New Jersey Department of Human Services;
Docket No. 86-42
Garrett, Donald F.; Settle, Norval D. Teitz, Alexander G.
The New Jersey Department of Human Services (State) appealed the
disallowance of $14,827 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 March 31,
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 $14,827, based on Decision
No.
480, which we incorporate herein.
MARCH 28, 1987