Audit of Medicaid Payments for Oxygen-Related Durable Medical Equipment and Supplies, A-05-03-00018

Page 2 – Mark B. McClellan, M.D., Ph.D. We recommend that the Centers for Medicare & Medicaid Services (CMS): • instruct those State agencies that limit Medicaid rates to Medicare reimbursement levels to apply Medicaid payment limits for oxygen-related DME and supplies correctly and in a timely manner • alert the remaining State agencies to the opportunity to reduce Medicaid payments by limiting reimbursement rates for oxygen-related DME and supplies to the Medicare-allowable amounts In comments dated April 15, 2004, CMS officials agreed with the first recommendation in our draft report but did not agree with the second recommendation, which was to encourage States to consider limiting payment rates for oxygen-related DME and supplies. We considered CMS’s comments and revised the recommendation. CMS’s comments are summarized in the report and are included as an appendix. Please send us your final management decision, including any action plan, as appropriate, within 60 days. If you have any questions or comments about this report, please do not hesitate to call me or your staff may contact George M. Reeb, Assistant Inspector General for the Centers for Medicare & Medicaid Audits, at 410-786-7104 or through e-mail at george.reeb@oig.hhs.gov. Please refer to report number A-05-03-00018 in all correspondence. Attachment Department of Health and Human Services OFFICE OF INSPECTOR GENERAL AUDIT OF MEDICAID ...