The Nebraska Department of Health and Human Services (DHHS) is making some changes after a state audit found check cashing violations.
Calder Lynch, director of DHHS Division of Medicaid and Long-Term Care, says checks were not cashed in the required amount of time, partly because drug makers were disputing the department’s invoices.
“We had about a ten-fold increase in the number of invoices that we sent out to manufacturers as a result of a system enhancement that we implemented that allowed us to go back and capture some rebates that we had not previously invoiced for,” Lynch tells Nebraska Radio Network, adding that the older claims were being challenged more often.
He also says being short staff made the problem worse.
“We are looking to see if an exception is necessary for us,” Lynch says of the three day rule for large checks. “We’re also looking at replacing the software that we use to improve the way that we collect and invoice these rebates, as well as looking at potentially contracting out this function to a vendor that could handle the invoicing and collections for the state.”
The state treasurer can grant an exception to the check cashing rule.
“While we’re still working through the second quarter backlog,” Lynch says, “(this) quarter, we are current and we are getting those processed in under 48 hours, typically.”