March 24, 2020

The OIG conducted an audit of a Texas Medicaid and CHIP Dental Maintenance Organization (DMO). The audit evaluated the DMO’s effectiveness in complying with selected contract requirements, achieving related contract outcomes, and reporting financial and performance results to Texas Health and Human Services (HHS).

The audit found that the DMO allocated $273,926 in indirect sales and marketing expenses that were unallowable because the expenses were associated with activities outside Texas and unrelated to Texas Medicaid and CHIP. Other unallowable corporate expenses include:

  • $83,824 for penalties, promotional advertising, and sponsorship expenses
  • $51,470 postage for activities outside of Texas
  • $26,658 for subscriptions and dues
  • $1,338 labeled “account not found” in the “Network Development” cost center
  • $597 for non-travel meal expenses

To read more about the audit’s findings and recommendations to correct the errors , read the full report on the OIG website: https://tinyurl.com/ut3glcv