DEPARTMENTAL GRANT APPEALS BOARD
Department of Health and Human Services
SUBJECT: New Jersey Department
of Human Services
Docket No. 86-239
Decision No. 825
DATE: January 14, 1987
DECISION
The New Jersey Department of Human Services (State)
appealed the disallowance of $316,647 in federal
financial participation by
the Health Care Financing Administration (HCFA) under Title XIX (Medicaid)
of the Social Security Act. The disallowance was based on a review of
interest collected by the State on
overpayments made to Medicaid providers
recovered during the period February 1, 1983 to September 30,
1984.
The basis for the disallowance was that the State had not credited the federal
government.for any
part of the "penalty interest" the State received when it
recovered overpayments from providers of
Medicaid services. HCFA
contended that such interest constituted an applicable credit within the
meaning of Office of Management and Budget Circular A-87 and that,
accordingly, the federal
government was entitled to its share of the
interest.
The State acknowledged that this identical issue was
addressed in Board Docket No. 83-115, decided in
New Jersey Department of
Human Services, Decision No. 480, November 30, 1983. The State appealed
Decision No. 480 in United States District Court, and appealed this case to
preserve its rights in the event
Decision No. 480 should be reversed.
The State therefore requested that the Board issue a summary
decision in
this appeal. HCFA stated that it had no objection to the issuance of a
summary decision.
After HCFA issued its disallowance, the United
States District Court for the District of New Jersey upheld
Board Decision
No. 480 on November 13, 1986 (Civil No. 84-2771).
We
therefore sustain the disallowance of $316,647, based on Decision No. 480, which
we incorporate
herein.
________________________________
Donald
F. Garrett
________________________________
Norval
D. (John) Settle
________________________________
Alexander G. Teitz
Presiding Board Member