Corrected: Health and Social Services defends decision to not turn over audit files

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The Delaware Department of Health and Social Services has  responded to a subpoena filed by the Delaware State Auditor of Accounts for greater  access to information used in an audit of Medicaid  and Medicare services.

State Auditor Kathy McGuiness filed the actioni  in a rare dispute between state agencies. McGuiness  claims DHSS has failed to provide information on eligibility for services that is needed for a proper audit.

“It is unconscionable that these failures continue to happen, especially within the Medicaid program, which serves such a vulnerable population,” McGuiness said. “Clearly, this is a problem that has existed for years – long before the Covid-19 pandemic, so that’s not a valid excuse for why these critical Medicaid reviews aren’t happening,” McGuiness stated.

“After years of seeing DHSS and DMMA have the same failing results in the Single Audit, I decided to take further action,” McGuiness said. “I want to determine exactly why DMMA is not properly doing its job overseeing the spending of Medicaid dollars,” McGuiness stated. “What I am seeking is access to information that ultimately results in how state tax dollars are spent on Medicaid. Delaware Code clearly gives me the authority to do this, yet DHSS officials have refused to provide my team with full access.”

DHSS spokesperson Jill Fredel cited privacy issues and an unwillingness by the auditor to work with the department  in her response.

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Fredel’s  statement is as follows;

As part of the Auditor of Accounts’ request, her office is seeking access to Delaware’s Integrated Eligibility System  including the names of all individuals with Medicaid coverage. That would require disclosure of privileged or protected information, which the Division of Medicaid and Medical Assistance (DMMA) is prohibited under privacy laws from releasing. Delaware’s Integrated Eligibility System is used to determine eligibility not only for Medicaid, but also for the Supplemental Nutrition Assistance Program (SNAP) , Temporary Assistance for Needy Families (TANF) and subsidized child care. The system includes information on hundreds of thousands of Delawareans.  

 While the Department of Health and Social Services is restricted in providing access to the eligibility system, we are more than willing to work with the Auditor to clarify and streamline her office’s request and to provide documents that we are legally allowed to provide.

  In fact, on July 30, 2021, DHSS Secretary Molly Magarik offered alternatives to the Auditor’s request to achieve transparency and follow privacy laws. The Secretary offered six of the 15 categories that the Auditor requested, including access to reports of performance audits conducted by the Centers for Medicare & Medicaid Services (CMS) and the Medicaid Eligibility Quality (MEQC) program, both of which have legal authority to conduct such audits of Delaware’s Medicaid program. While the Auditor has not responded to the Secretary’s letter from July 30, 2021, the documents offered were produced to her office.

An earlier version of this story said a suit was filed. 

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