PIERRE - The South Dakota Department of Social Services has submitted its provider revalidation strategy to the Centers for Medicare and Medicaid Services (CMS).
The plan is in response to a call from CMS to all state Medicaid agencies to address areas of emerging risk for fraud, waste, and abuse and strengthen the array of safeguards used today to protect taxpayer resources. South Dakota's plan is accelerated and goes beyond CMS requirements.
"South Dakota will continue to be a leader in this country - especially when it comes to mitigating fraud and protecting taxpayer dollars," South Dakota Governor Larry Rhoden said. "A collaborative federal and state partnership is essential to continue identifying, investigating, and preventing fraud, waste, and abuse."
South Dakota's plan expands how providers are categorized, with some groups receiving a more thorough review process based on identified risk factors. This would include more frequent renewals and recertifications, along with occasional onsite visits as part of routine oversight.
"This plan enhances what we were already doing," DSS Cabinet Secretary Matt Althoff said. "We desire for South Dakotans to gain a strengthened confidence that the providers submitting billings to Medicaid have been reviewed and confirmed to providing bona fide services at the locations providers claim to be."
South Dakota has historically had a strong Payment Error Rate Measurement (PERM), which is used to measure improper payments in Medicaid and CHIP. The latest PERM rate, audited in State Fiscal Year 2024 (SFY24) for claims billed during SFY23, showed a rate of 1.15 percent for CHIP and 0 percent for Medicaid, compared to the national average of 6.1 percent and 5.1 percent