- Alaska Statutes.
- Title 47. Welfare, Social Services and Institutions
- Chapter 5. Administration of Welfare, Social Services and Institutions
- Section 200. Annual Audits.
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. Medical Assistance Fraud.
AS 47.05.200. Annual Audits.
- (a) The department shall annually contract for independent audits of a statewide sample of all medical assistance
providers in order to identify overpayments and violations of criminal statutes. The audits conducted under this
section may not be conducted by the department or employees of the department. The number of audits under this section
each year, as a total for the medical assistance programs under AS 47.07 and AS 47.08, shall be 0.75 percent of all enrolled providers under the
programs, adjusted annually on July 1, as determined by the department, except that the number of audits under this
section may not be less than 75. The audits under this section must include both on-site audits and desk audits and
must be of a variety of provider types. The department may not award a contract under this subsection to an
organization that does not retain persons with a significant level of expertise and recent professional practice in the
general areas of standard accounting principles and financial auditing and in the specific areas of medical records
review, investigative research, and Alaska health care criminal law. The contractor, in consultation with the
commissioner, shall select the providers to be audited and decide the ratio of desk audits and on-site audits to the
total number selected.
- (b) Within 90 days after receiving each audit report from an audit conducted under this section, the department shall
begin administrative procedures to recoup overpayments identified in the audits and shall allocate the reasonable and
necessary financial and human resources to ensure prompt recovery of overpayments unless the attorney general has
advised the commissioner in writing that a criminal investigation of an audited provider has been or is about to be
undertaken, in which case, the commissioner shall hold the administrative procedure in abeyance until a final charging
decision by the attorney general has been made. The commissioner shall provide copies of all audit reports to the
attorney general so that the reports can be screened for the purpose of bringing criminal charges.
- (c) Each fiscal year, the state's share of recovered overpayments obtained because of the required contract audits under
this section shall be deposited with the commissioner of revenue under AS 37.10.050
and separately accounted for by the commissioner of administration under AS 37.05.142
. The legislature may appropriate a portion of the estimated balance in the account to the department to pay for the
annual audits described in this section.
- (d) As a condition of obtaining payment under AS 47.07 and AS 47.08 and for purposes of this section, a provider shall allow
- (1) the department reasonable access to the records of medical assistance recipients and providers; and
- (2) audit and inspection of the records by state and federal agencies.
- (e) This section does not preclude the department from performing audits that are allowed or required under other laws.
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