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Audit of the Catastrophic Illness in Children Relief Fund

April 20, 2022 · Catastrophic Illness in Children Relief Fund · Read the full official report on mass.gov ↗

Published April 20, 2022 Audit covers July 1, 2017 – June 30, 2019 Under Suzanne M. Bump · 2011–2023

In plain English
The audit found that this children’s medical relief fund helps families, but it also paid some expenses without required paperwork, took too long to process applications, and missed a chance to claim federal money.
source
“CICRF did not process applications in a timely manner.”
Read the plain-English breakdown
What is this?

This is a state audit of the Catastrophic Illness in Children Relief Fund, a Massachusetts program that reimburses families for major child medical costs not covered elsewhere.

“This assistance is provided through reimbursements to families to cover qualified medical expenses they have incurred.”
Why was it audited?

Auditors checked whether the fund helped eligible families, paid only allowed expenses, and tried to recover federal matching money when possible.

“The purpose of this audit was to determine whether CICRF met the needs of families that applied for financial assistance, whether it sought federal matching funds (also called federal financial participation) in accordance with state regulations for all eligible medical expenses, and whether it disbursed funds only to eligible applicants and only for qualified expenses.”
Why it matters

Families using this program may already be under serious financial strain, so delays and mistakes can make a hard situation worse.

“As a result of these processing delays, families seeking reimbursement for medical expenses might incur financial hardship.”
What's in it for me?

If you are a Massachusetts family facing large medical costs for a child, this program may reimburse certain costs that insurance or public benefits do not cover.

“Medical expenses are not reimbursable if they are covered by health insurance, public benefits, or other financial sources.”
The bottom line

The fund was serving families, but the audit found weak paperwork controls, slow processing, and missed federal reimbursement opportunities.

“CICRF reimbursed applicants $24,455 for medical expenses without required documentation.”
What happens next

Auditors recommended stronger documentation checks, clearer staff performance goals, and coordination with MassHealth to seek federal matching funds.

“CICRF should develop formal performance standards for employees, including attainable, time-based goals for processing and reviewing applications.”
Why it's significant

The program handled millions of dollars for hundreds of families, so better controls and faster processing affect real public money and real household budgets.

“During the audit period, CICRF reimbursed 363 families a total of $3,548,763 for medical expenses and related expenses.”
Jargon, unpacked

“Federal financial participation” means federal matching money the state can recover for certain eligible medical costs, often through Medicaid-related programs.

“A state can recover funds from the federal government for certain medical expenses under Medicaid and other human service programs as part of FFP.”

3 figure(s) pending source verification - not shown

What the Auditor checked

What the Auditor found

CICRF reimbursed applicants for medical expenses without required documentation.
recordkeeping/documentationinternal controls

Why it matters: There was inadequate assurance that the expenses were qualified medical expenses and were calculated correctly under state law.

Standard: CICRF’s policies require documentation to determine expense eligibility, and Section 5(d) of Chapter 111K requires sliding fee scales based on family size and income. ( Section 5(d) of Chapter 111K of the Massachusetts General Laws )

1 recommendation
  • CICRF should develop monitoring controls to ensure that its staff has all required documentation before reimbursing medical expenses.agency: agreed
Agency response & Auditor reply
Agency: "CICRF is committed to obtaining all required documentation prior to approving any reimbursements to a family."
Auditor: "OSA cannot substantiate this assertion because, as previously noted, CICRF did not provide us with the documentation necessary to do so."
CICRF did not process financial assistance applications in a timely manner.
reporting timelinessinternal controls

Why it matters: Families seeking reimbursement for medical expenses might incur financial hardship because of processing delays.

Standard: CICRF’s stated purpose is to provide financial assistance to qualified families for certain medical and related expenses not covered by other sources. ( CICRF website purpose statement )

1 recommendation
  • CICRF should develop formal performance standards for employees, including attainable, time-based goals for processing and reviewing applications.
Agency response & Auditor reply
Agency: "CICRF aims to provide timely assistance to families while adhering to all Fund policies and procedures."
Auditor: "OSA believes that developing formal performance standards for employees, including attainable, time-based goals for processing and reviewing applications, would address many of the application processing issues."
CICRF did not pursue federal matching funds for qualified medical services.
grants managementinternal controls

Why it matters: The Commonwealth lost an opportunity to receive federal matching funds for eligible healthcare costs.

Standard: Section 10 of Chapter 111K requires DPH to maximize and coordinate federal financial participation for CICRF expenses that qualify as medical assistance. ( Section 10 of Chapter 111K of the General Laws )

1 recommendation
  • CICRF should review all its reimbursements to determine whether any qualify for federal matching funds and should coordinate with MassHealth to seek federal matching funds for all eligible expenditures.agency: agreed
Agency response & Auditor reply
Agency: "DPH will continue to coordinate with MassHealth to pursue federal matching funds of qualified medical services moving forward."
Auditor: "Based on its response, CICRF is taking measures to address our concerns in this area."

More audits of this entity

Other Office of the State Auditor reports on Catastrophic Illness in Children Relief Fund .

See this entity's page with all 2 audits →