Pennsylvania DPW Response To CMS Regarding Behavioral Health HealthChoices County Contracts
August 27, 2013
The Pennsylvania Department of Public Welfare (DPW) responded to federal concerns raised in July 2013 that Pennsylvanias Medicaid behavioral health managed care contracts with county entities were intergovernmental transfer (IGT) arrangements because the state allowed the counties the right of first opportunity for the contracts. The DPW presented evidence that its contracts with counties are validly procured contracts. The issue is Medicaid matching funds claimed for administrative costs in the capitated rate. Under an IGT, no Medicaid match is permitted.
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