California school districts may have noticed that their current financial summaries have had funds recouped for payment going back to the 2010 CRCS report (Cost Reimbursement Comparison Schedule). Xerox who is the current California fiscal billing agent has notified school districts with a recoupment letter outlining funds being withheld.

District Coordinators and Administrators should be checking over their financial summaries to see if claims that have been submitted are matching their RADs. We have provided you with a sample letter which will show districts if any of their current reimbursement is affected.

What does this mean for your school district?

As part of your provider enrollment with the Department of Human Health Care Services commonly referred to as DHCS, you submit claims for Medicaid reimbursement throughout the current school year. 

These claims are referred to as interim payments. If determined that you have received an over payment of funds, the State will issue what is referred to as a recoupment of funds. 

Rather than bill the district directly for the overpayment of funds, DHCS will withhold 100% of a district’s current reimbursement until the overpayment is recouped in full.

For districts who use a billing vendor to process claims on their behalf, the recoupment should not impact their invoicing by the vendor, unless they previously received payment from the district for the year indicated in the recoupment.

If you have any questions please contact us for assistance at: