OIG: Texas Overbilled Medicaid for Medical Transportation Costs


The Department of Health & Human Services Office of Inspector General (OIG) estimates that Capital Area Rural Transit System received overpayments of at least $583,000 ($292,000 Federal share) for nonemergency medical transportation claims that did not comply with Federal and State requirements in 2007.  The audit also identified other questionable claims, which are targeted for added review.  The reported findings provide critical insights about some of the practices of Medicaid transportation services providers that are likely to draw audit or enforcement attention by OIG or other federal or state officials. 

According to the “Review Of Nonemergency Medical Transportation Costs In The State Of Texas (Transportation Provided By Capital Area Rural Transit System,” Report Number a-06-08-00096 (the “Audit Report”), the audit found concerns in 68% of 100 audited samples of Medicaid billings of Capital Area Rural Transportation System (CARTS).for non-emergency services provided to Medicaid beneficiaries during 2007 as a subcontractor to the State of Texas.  Texas Health and Human Services Commission contracted with the Texas Department of Transportation (TxDOT) to administer the nonemergency medical transportation to and from covered health care service providers for Medicaid beneficiaries and other eligible recipients. TxDOT subcontracted with CARTS to provide  these transportation services to 10 Texas counties. Read More Details

For More Information or Assistance 

If you need assistance reviewing and updating your existing practices in response to this or other OIG, CMS or other federal or state Medicaid, Medicare or other audit or enfocement activities or with other health industry regulatory, reimbursement or other operational or compliance concerns, please contact the author of this update, attorney Cynthia Marcotte Stamer.  Ms. Stamer has extensive experience advising and assisting health care providers and other health industry clients with licensure, contracting, reimbursement, compliance, public policy, regulatory, staffing, public policy and other operations and risk management matters. Ms. Stamer also regularly publishes and conducts training on these and other compliance, management and operations matters.  You can contact Ms. Stamer to inquire about engaging her services or for information about training or other resources that she provides at (469) 767-8872 or via e-mail here.  To get more information about Ms. Stamer and her health industry experience, see here

Other Recent Developments 

If you found this information of interest, you also may be interested in reviewing some of the following recent Updates available online by clicking on the article title:  

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