GAB Decision 748
April 29, 1986
New York State Department of Social Services;
Docket No. 86-33
Bsllard, Judith A.; Teitz, Alexander G. Settle, Norval D.
The New York State Department of Social Services (State) appealed the
disallowance of $1,978,995 in federal financial participation by the
Health Care Financing Administration (HCFA) under Title XIX (Medicaid)
of the Social Security Act (Act). The disallowance represented claims
submitted by the State for 15 percent incentive payments for medical
support enforcement activity for the period July 1984 through March
1985. HCFA determined that the documentation submitted by the State in
support of its claims did not demonstrate that the gross collections
against which the 15 percent had been calculated were in fact the
results of enforcement and collection activity undertaken by a political
subdivision of New York State or by another state pursuant to
cooperative agreements in accordance with sections 1903(p)(1) and
1912(a)(1) of the Act.
The Board dealt with essentially the same issues concerning
incentive
payments for enforcement and collection efforts in New York
State
Department of Social Services, Decision No. 628, March 19, 1985.
The
State requested the opportunity to verify whether political
subdivisions
reporting expenditures duly distinguished between allowable
Child
Support Enforcement and other collections in calculating the 15
percen
payment for medical support enforcement activity. The State
asserted
that, once the figures used by HCFA in reaching the disallowance
were
verified, it would stipulate to the disallowance being sustained
based
upon Decision No. 628, without the necessity of further
proceedings.
See, Appellant's letter to the Board dated February 12,
1986.
The Board gave the State the opportunity to examine HCFA's
calculations.
The State then submitted documentation showing that the
disallowance
should be reduced by $30,122. HCFA reviewed the State's
submission and
agreed that the disallowance should be so reduced. See,
Respondent's
letter to the Board dated April 16, 1986.(2)
We therefore sustain the disallowance in the reduced amount of
$1,948,873,
based on Decision No. 628, which we incorporate herein.
MARCH 28, 1987