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Audit of the Office of Medicaid (MassHealth) - Review of Claims Paid for Services by Old Colony Elder Services (OCES)

June 29, 2020 · Office of Medicaid (MassHealth) · Read the full official report on mass.gov ↗ · official site ↗

Published June 29, 2020 Audit covers January 1, 2016 – December 31, 2018 Under Suzanne M. Bump · 2011–2023

In plain English
Auditors found that Old Colony Elder Services was paid for some adult foster care services even though required yearly MassHealth approvals were not submitted.
source
“OCES provided AFC to MassHealth members without submitting annual prior authorizations.”
Read the plain-English breakdown
What is this?

This is a state audit of MassHealth payments to Old Colony Elder Services for adult foster care from January 1, 2016 through December 31, 2018.

“OSA has conducted an audit of MassHealth claims for adult foster care (AFC) paid to Old Colony Elder Services (OCES) for the period January 1, 2016 through December 31, 2018.”
Why was it audited?

The audit checked whether Old Colony Elder Services billed MassHealth properly for adult foster care.

“The purpose of this audit was to determine whether OCES properly billed for AFC provided to MassHealth members during our audit period.”
Why it matters

This matters because MassHealth is a large public program funded partly by state money, and the auditor says public trust is important.

“As with any government program, public confidence is essential to this program’s success and continued support.”
What's in it for me?

For ordinary residents, the audit is about whether taxpayer-supported healthcare money was paid only for services that had the required approval.

“As a result, MassHealth paid for AFC that it did not authorize.”
The bottom line

The main finding was that Old Colony Elder Services missed many required annual approvals in the sample auditors reviewed.

“Specifically, for 40 of 208 MassHealth members who received AFC, OCES did not submit 55 (58%) of 95 required annual prior authorizations.”
What happens next

Old Colony Elder Services said it started submitting the required annual approvals once the MassHealth online portal became available.

“OCES officials told us that OCES began submitting annual prior authorizations on April 16, 2019, the day MassHealth’s Long-Term Services and Supports Provider Portal became operational.”
Why it's significant

The issue is financially significant because MassHealth paid Old Colony Elder Services more than $9 million for adult foster care claims during the audit period.

“During this period, MassHealth paid OCES $9,386,577 for 6,315 claims to provide AFC for 217 MassHealth members.”
Jargon, unpacked

Adult foster care means help for older adults or people with disabilities with everyday tasks so they can keep living outside a long-term-care facility.

“Both programs are designed to provide sufficient assistance to allow members to continue to live independently and avoid the high cost of a long-term-care facility.”

1 figure(s) pending source verification - not shown

What the Auditor checked

What the Auditor found

Old Colony Elder Services provided adult foster care without required annual prior authorizations.
internal controlsrecordkeeping/documentation

Why it matters: MassHealth paid for adult foster care services that it had not authorized.

Standard: Section 408.417(B) of Title 130 of the Code of Massachusetts Regulations requires prior authorizations for adult foster care before the first date of service and annually thereafter. ( Section 408.417(B) of Title 130 of the Code of Massachusetts Regulations )

1 recommendation
  • OCES should obtain annual prior authorizations from MassHealth for its members who are receiving AFC.agency: already implemented
Agency response & Auditor reply
Agency: "The Portal was implemented on April 16, 2019 and we immediately started submitting PA as required in the regulations."

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