New York State Department of Social Services, DAB No. 792 (1986)

DEPARTMENTAL GRANT APPEALS BOARD

Department of Health and Human Services

SUBJECT:  New York State                       
Department of Social Services

Docket No. 86-107
Decision No. 792

DATE:  September 29, 1986

DECISION

The New York State Department of Social Services (State) appealed the
disallowance of $1,958,901 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 April 1985 through September
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)(l) and
1912(a)(l) 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 percent
payment for medical support enforcement activity.  The State asserted
that, once the figures used by HCFA in reaching the disallowance were
verified, the State 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 June 16, 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 $32,536.  HCFA reviewed the State's submission and
agreed that the disallowance should be so reduced.  See Respondent's
letter to the Board dated September 24, 1986..- 2 -

We therefore sustain the disallowance in the reduced amount of
$1,926,365, based on Decision No. 628, which we incorporate by reference
here.


 ________________________________ Judith A. Ballard

 ________________________________ Alexander G. Teitz

 ________________________________ Norval D. (John) Settle
 Presiding Board