Medicaid Rates for New York State-Operated Developmental Centers May Be Excessive (A-02-11-01029)

March 15, 2012
The Office of the Inspector General (OIG) reviewed New York’s Medicaid rate setting methodology for 2009 for state-operated developmental centers. The “total reimbursable operating costs” methodology is a starting point which includes the prior year’s total reimbursable operating costs, a volume variance adjustment, and a trend factor increase. The review found that during state fiscal year 2009, the New York Medicaid program claimed Medicaid reimbursement for 1,688 beneficiaries at 15 developmental centers totaling $2.26 billion, with the federal share at $1.1 billion. The state’s actual costs for the developmental centers . . .