Department of Health
State Education Department

School districts and counties may be reimbursed by Medicaid for the cost of certain diagnostic and special education services provided to children with, or suspected of having, disabilities. In our prior audit report 2000-S-1, we examined the payments made by Medicaid for such services over a three-year period and identified potential overpayments totaling between $33 million and $37.1 million. Most of these potential overpayments related to duplicate reimbursement claims submitted by the New York City Board of Education. We recommended that the payments be investigated, all overpayments be recovered, and controls be improved to prevent such overpayments in the future. In our follow-up review, we found that all of our prior audit recommendations had been implemented, and nearly $31 million in overpayments had been recovered.

For a complete copy of Report 2002-F-14 click here.