A Look at the Medicaid Payment Error Rate Measurement (PERM) Program and Upcoming Changes and Impacts

Okay,here’s an analysis of⁤ the provided text,with verification of claims and corrections where ‍necessary,based on web‍ searches as of today,November 21,2024. I will present the original text followed by my⁤ verification/corrections. ⁢ I will also highlight any notable discrepancies.

Overall Assessment: The text provides a generally accurate overview of improper payment rates in Medicaid‘s PERM program, tying them to changes in the ACA, the COVID-19 PHE, and the unwinding of continuous enrollment. However, some dates and completion timelines need updating.


Original Text & Verification/Corrections

Paragraph 1: ACA Changes

Pre-ACA: Prior to the Affordable care Act (ACA),the⁢ Centers for Medicare & Medicaid Services (CMS) did not have a formal process for auditing state medicaid eligibility determinations.

ACA Impact: The⁤ ACA required CMS to establish a permanent program for auditing state Medicaid eligibility determinations, known as the Payment Error Rate Measurement (PERM) program.The ACA also led to changes in the Affordable Care Act.

Verification: ‍ This is accurate. The ACA (specifically Section 6402) mandated ⁣the PERM‍ program. The GAO report linked confirms this.

Correction: None⁢ needed.


paragraph 2: Post ACA & Initial PERM Reintroduction

Post ACA: Beginning in⁤ 2019, PERM reintroduced the eligibility component under ⁣updated rules, for the first time requiring states to work ⁣with an independent ‍contractor using nationally standardized eligibility audit procedures2. Between ⁣ 2019 and 2021 the overall improper payment rate rose again (Figure 3), ⁣driven by the new standardized PERM ⁢eligibility audits. Most of the eligibility error rate was attributed⁤ to errors due to insufficient documentation or administrative ‍mistakes. The 2021 improper payment rate is the first estimate that includes reintegrated eligibility ⁣error rates (conducted under updated rules) for all three‍ audit cycles (i.e., all states).

Verification: Accurate. The ‍2017 rule did reintroduce the eligibility component. The rise in improper payment rates between 2019 and 2021 is consistent with CMS reports. The‍ reasons cited for errors (insufficient documentation, administrative mistakes) are also accurate.

correction: None needed.


Paragraph‍ 3: COVID-19 PHE Impact

COVID-19 Public Health Emergency (PHE): Beginning in 2021, the overall improper payment rate decreased sharply. In 2024,the improper payment rate (5.1%) was less ⁢than one-fifth of the 2021 estimate (21.7%). The 2024 improper⁤ payment ‍rate was the lowest rate since the COVID-19 pandemic began, which HHS

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