HHS OIG, Audit - Tennessee Home and Community-Based Mental Retardation Services for July 1, 2002, Through

,," ~DEPARTMENT OF HEAlLTH &. HUMAN SERVICES Office of Inspector General( t­'(1-,¡". ..1I""JQ Washington, D.C. 20201 ~'~l"'YIC'S"'. SEP 1 3 200/ TO: Kerry Weems Acting Administrator Centers for Medicare & Medica' Services~~ FROM: oseph E. Vengr' Deputy Inspector General for Audit Services SUBJECT: Tennessee Home and Community-Based Mental Retardation Services for July i, 2002, Through June 30, 2003 (A-04-03-03026) Attached is an advance copy of our final report entitled "Tennessee Home and Community-Based Mental Retardation Services for July 1, 2002, Through June 30,2003." We wil issue this report to the State Medicaid agency within 5 business days. Tennessee's State Medicaid agency oversees section 1915(c) waivers to provide home and community-based services (HCBS) to Medicaid beneficiaries with mental retardation and developmental disabilities. Under a contract with the State Medicaid agency, the Division of Mental Retardation Services (DMRS) manages the HCBS waivers and contracts with local entities to provide HCBS to approximately 4,300 mentally retarded and developmentally disabled individuals in the community. From July 1, 2002, through June 30, 2003, the State Medicaid agency claimed Federal reimbursement of nearly $150.6 million in HCBS costs. Our objectives were to determine whether the State Medicaid agency claimed Federal reimbursement for HCBS that were adequately supported in the providers' records and provided in accordance ...