Press Release  Audit Leads to Improvement to MassHealth’s Accounts Receivable Process

Boston — In response to an audit released today by State Auditor Suzanne M. Bump, MassHealth indicates it is taking steps to improve its processes for administering uncollectible accounts receivable balances. The audit found MassHealth did not have policies, procedures, or monitoring controls to determine when to write off accounts that are uncollectible.

“While MassHealth generally effectively administers its accounts receivable process, it is important that it develop processes to write off debts it is unlikely to collect. Without these processes, it could spend time and resources chasing money it will likely never successfully recoup,” Bump said of the audit. “I commend the agency for taking these matters seriously and taking steps to fix this issue.”

During the audit period (January 1, 2015 through December 31, 2017), the program had 30,948 uncollected accounts, totaling approximately $12.76 million, that were at least 2 years old and in some instances more than 10 years old. During this same period, it collected more than $616 million in new accounts receivable.

MassHealth is administered by the Executive Office of Health and Human Services, through the Division of Medical Assistance. The state’s Medicaid program annually provides access to healthcare for approximately 1.9 million eligible low- and moderate-income children, families, seniors, and people with disabilities. In FY17, MassHealth paid providers more than $15 billion, of which 50 percent was funded by the Commonwealth. Medicaid expenditures represent approximately 39 percent of the state’s total annual budget.

The full report is available here.

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