Minnesota Lawyer
The Segal Company has been awarded a contract to audit Minnesota’s Medicaid rates from 2003 to 2011. The Atlanta-based firm will receive just over $150,000 to scrutinize the state’s rate-setting methodology over the next three months.
The audit comes in response to federal scrutiny over whether the state inappropriately drew down federal funds to subsidize a state program. Congressional investigators, along with the federal Centers for Medicare and Medicaid Services, have been looking into whether the state improperly utilized federal dollars to subsidize the state’s General Assistance Medical Care program, which was eliminated by then-Gov. Tim Pawlenty in 2010.
The Segal firm’s task, as outlined in the contract with the Minnesota Department of Human Services: “Conduct a review and analysis of the process and methodologies used by prior consultants, actuaries and departmental personnel to set managed care rates for Prepaid Medical Assistance Program (PMAP), MinnesotaCare (MNCare) and General Assistance Medical Care (GAMC) during the time period of State Fiscal Years (SFY) 2003 through SFY2011 (July 1, 2002 through June 30, 2011).
The contract, awarded earlier this month, calls for Segal to complete its preliminary findings by December 19. It’s final report is expected to be finished by the end of January and presented to state officials the following month. The contractor will be assessed a $1,200 fine per day for missing those deadlines.
Legislative Auditor James Nobles, who has scrutinized the state’s Medicaid program, has been critical of the short time frame for the audit. He deemed it “unrealistic” that a credible probe can be conducted in such a brief period of time.
