Report Summary
Department of Human Services:
Outstanding Provider Debt in
Minnesota's Medicaid Program
Performance Audit
| Financial Audit Division |
December 2024 |
The Department of Human Services did not comply with the significant
finance-related legal requirements we tested and generally had
inadequate internal controls. The more significant instances of
noncompliance and internal control weakness were in the areas of
recovering outstanding provider dept and accurately reporting the
accounts receivable amount on the state’s financial statements.
The list of findings below and the full report provide more
information about these concerns.
Finding 1
The Department of Human Services has not attempted to recover over
$40 million in outstanding overpayments to Medical Assistance
providers’ accounts. (p. 7)
Recommendations
-
The Department of Human Services should recover outstanding
overpayments from Medical Assistance providers.
-
The Department of Human Services should improve internal controls
to ensure that it regularly pursues collection of provider
overpayments.
Finding 2
The Department of Human Services is planning to forgo recovery of
outstanding provider debt that may still be recoverable. (p. 9)
Recommendations
-
The Department of Human Services should recover outstanding
provider dept in accordance with state law and its own policy.
-
The Department of Human Services should work with the Legislature
to clarify its authority to recover outstanding provider dept.
Finding 3
The Department of Human Services has not accurately reported its
accounts receivable balance to Minnesota Management and Budget for
inclusion in the state’s financial statements since 2019. (p. 11)
Recommendations
-
The Department of Human Services should accurately report its
accounts receivable balance in the state’s financial statements.
-
The Department of Human Services should improve internal controls
to ensure it accurately reports accounts receivable in the state’s
financial statements.
Finding 4
The Department of Human Services was unable to provide adequate
data to enable us to confirm the outstanding provider balances.
(p. 12)
Recommendations
-
The Department of Human Services should ensure that it maintains
adequate documentation to support the outstanding provider
balances.
-
The Department of Human Services should ensure that the
outstanding provider debt recorded in the Medicaid Management
Information System is accurate.
