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 ↗
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“CICRF did not process applications in a timely manner.”
Read the plain-English breakdown
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.”
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.”
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.”
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 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.”
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.”
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.”
“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
- Partially Does CICRF financially meet the needs of eligible applicants who have applied for financial assistance for qualified medical expenses by using sliding fee scales, as required by Sections 5(d) and 5(b) of Chapter 111K of the General Laws, in a timely manner?
- Did not comply Does CICRF pursue and receive federal matching funds for qualified medical expenses in accordance with Section 10 of Chapter 111K of the General Laws?
- Partially Does CICRF disburse funds to eligible applicants for qualified medical expenses in accordance with its “Eligibility Policy” and “Expense Policy”?
What the Auditor found
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."
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."
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 .
- Catastrophic Illness in Children Relief FundOther · June 13, 2017