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September 15, 2006
 Indiana Settlement in Response to OIG Report A-05-04-00081
In fiscal year (FY) 2003, community mental health centers in Indiana
overstated Federal reimbursement for the Medicaid Recovery Program
by $328,151. Three selected community mental health centers located
in Indianapolis and Terre Haute had net overpayments of $149,497 for
costs that were improperly claimed during FY 2003, due to flawed
cost allocations, claiming errors, unallowable costs, and an
incomplete sampling universe. A review of the Indiana Division of
Mental Health and Addiction's (Mental Health) oversight procedures
disclosed $223,244 in unrecovered net overpayments identified by
contracted auditors. This amount is offset by $44,590 of
under-claimed costs due to contractor claims processing errors.
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