Alabama Medicaid Agency, DAB No. 917 (1987)

DEPARTMENTAL GRANT APPEALS BOARD

Department of Health and Human Services

SUBJECT:  Alabama Medicaid Agency

Docket No. 87-153
Decision No. 917

DATE:  October 27, 1987

DECISION

The Alabama Medicaid Agency (Alabama) appealed a determination by the
Health Care Financing Administration (HCFA) disallowing $105,651 in
federal financial participation (FFP) claimed by Alabama under the
Medicaid program for the fiscal quarter ending March 31, 1987.  The
disallowance represented a reduction of enhanced funding (from 75% to
70% FFP) provided for the operational costs of Alabama's Medicaid
Management Information System (MMIS).  HCFA based the disallowance on
its disapproval of Alabama's MMIS.  HCFA disapproved the MMIS because
Alabama failed to meet a standard for orderly and timely claims
processing in the Systems Performance Review.

This same issue was the subject of an earlier Board Decision, Alabama
Medicaid Agency, Decision No. 880, July 6, 1987.  There, Alabama
challenged a similar disallowance on the ground that it had been denied
administrative review for what it contended was a state plan compliance
issue.  Additionally, Alabama alleged that HCFA acted improperly by
changing the original MMIS performance standards without publishing
those changes in the Federal Register.  Alabama also asserted that the
timeliness of claims payment was an invalid standard by which to assess
its MMIS, since the MMIS was not responsible for actually paying claims.
In Decision No. 880, we rejected Alabama's arguments on these points and
upheld the disallowance.

In the current appeal, Alabama reiterated its prior arguments and added
that HCFA's reliance on Decision No. 880 is misplaced since that
decision is under judicial review. 1/ We issued an Order (September 16,
1987) directing Alabama to show cause why we should not issue a summary
decision in this appeal consistent with our holding in Decision No. 880.
2/  Responding to the Order (October 15, 1987), Alabama indicated that
it did not object to our proposal to issue a summary decision.  In a
letter dated October 22, 1987, HCFA indicated that it agreed with our
proposal to issue a summary decision.

Therefore, based on our analysis in Decision No. 880 (which we
incorporate by reference here), we sustain this disallowance in the
amount of $105,651.

 

                            ________________________________ Cecilia
                            Sparks Ford

 

                            ________________________________ Norval D.
                            (John) Settle

 

                            ________________________________ Alexander
                            G. Teitz Presiding Board Member

 


1.     Although Alabama did not provide specific citations, we are aware
of two pending appeals involving Decision No. 880: Alabama Medicaid
Agency v. Bowen, No. C.A. 87-H-823-N (M.D. Ala., filed Aug. 20, 1987);
and Alabama Medicaid Agency v. Bowen, No.  87-7531 (11th Cir., filed
Sept. 2, 1987).

2.     In a cover letter accompanying the Order, we explained to Alabama
that where we receive an appeal involving issues previously contested by
a state, which we have addressed in a decision, and no new substantive
arguments have been made, it is our practice to issue a summary decision
thereby enabling a state to take whatever steps it sees as necessary to
preserve its