DEPARTMENTAL APPEALS BOARD
Department of Health and Human Services
SUBJECT: New Jersey Department
DATE: January 12, 1990 of
Human Services Docket No. 89-238
Decision No. 1122
DECISION
The New Jersey Department of Human Services (State) appealed a
determination by the Health Care Financing Administration (HCFA)
disallowing $47,175 in federal financial participation (FFP) claimed for
the period October 1, 1987 through March 31, 1989. HCFA determined that
the State had claimed at an enhanced FFP rate of 75 percent indirect
administrative costs that were properly claimed at the 50 percent FFP
rate available generally for administrative costs under Title XIX
(Medicaid) of the Social Security Act (Act). HCFA disallowed the amount
of the State's claim that exceeded FFP at the 50 percent rate.
The issue presented by this case was previously raised and addressed in
New Jersey Dept. of Human Services, DAB No. 1071 (1989). The State
acknowledged that the facts and law here are "substantially identical."
In New Jersey, the Board affirmed the decision that it made in New York
State Dept. of Social Services, DAB No. 1023 (1989), and applied it to
New Jersey. In New York, the Board held that it was within HCFA's
discretion to establish a policy that distinguishes between indirect
costs of a state's Medicaid agency, which would qualify for enhanced
reimbursement, and statewide and department- wide costs ("A-87 costs"),
which would qualify only for the 50 percent rate. The State asserted
here that it disagreed with the Board's analysis in New Jersey, although
the State agreed that a summary decision is appropriate in this case.
HCFA also agreed to this course of action.
We therefore sustain the disallowance of $47,175 based on the reasons
and analysis in DAB No. 1071, which we incorporate here in full.
___________________________________ Judith A.
Ballard
___________________________________ Norval D.
(John) Settle
___________________________________ Cecilia Sparks
Ford Presiding Board