Office of Inspector General's Partnership Plan--Louisiana Legislative Auditors Office Report on Laboratory Services

This final report presents results of an audit of the Medicaid non-inpatient laboratory services program in Louisiana for the period January 1, 1993 through December 31, 1994. This review was conducted by the Louisiana Legislative Auditor (LLA). This work was conducted as part of our partnership efforts with State Auditors to expand audit coverage of the Medicaid program. The LLA found that edits to ensure that laboratory services are properly bundled were not sufficient to detect and prevent payments for tests that were not properly bundled and/or duplicated. Also, failure to require the bundling of two individual automated tests could result in additional costs to the State and Medicaid program. Finally, Medicaid fee schedules were not updated in a timely manner.