Medicaid Partnership Plan, Medicaid Third Party Liability, Department of Public Health & Human Services : Limited Scope Review 1999

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The second sample reviewed was of claims for Medicaid recipients with group health insurance coverage. We tested all claims of 41 of 260 recipients for the time period of December 1, 1998, through May 31, 1999. This sample was reviewed to ensure MMIS did not pay claims that were the responsibility of a third party.
We also tested contractor procedures for billing and recovering third party claims paid by MMIS. There are instances when MMIS authorizes certain medical claims, then bills a liable
...third party.
This process is called "pay and chase". We assessed the timeliness Page 2 Chapter I - Introduction Compliance Disclosure for sending bills. In addition, we evaluated the procedures used for monitoring and collecting receivables.
We requested and reviewed payment denial documentation submitted by third parties to ensure the contractor received and verified the explanation of denials prior to submission of claims through the Medicaid process.
This audit was completed in accordance with government auditing standards for performance audits.


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