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Council OKs $75,000 transfer to pay UMass for Medicaid billing services for schools
Summary
The council approved a $75,000 transfer to pay UMass for Medicaid reimbursement billing services the university provides on behalf of the school department; the fee is 2.5% of reimbursements, and city staff said the payment is an annual, recurring billing item.
The Springfield City Council on June 23 approved a $75,000 transfer to pay the University of Massachusetts for Medicaid reimbursement billing services the university performs on behalf of the school department.
Kathy Buono told the council that UMass provides billing services for school‑based Medicaid claims and that the university charges the city 2.5% of reimbursements as a fee for that service. "UMass bills and does the billing for the school department for the Medicaid reimbursements for the school department," Buono said, and the city must pay UMass 2.5% of the reimbursements collected.
Buono said the requested transfer would be funded from the reserve for contingencies and $21,000 from the Office of Management and Budget (OMB) budget to cover the $75,000 payment. Councilor Allen asked for clarification about what UMass does; Buono reiterated that UMass performs the billing function and the city pays the fee from city revenues that result from Medicaid reimbursements.
The council approved the transfer by roll call. Meeting speakers said this is a routine, annual arrangement and that the city brings the transfer forward each year when the billed amount is higher than budgeted estimates.
