WHAT IS PERM?
The Payment Error Rate Measurement, commonly referred to as PERM, is a comprehensive on-going federal audit to measure how frequently errors may occur when providers submit claims to States and States pay those claims. All 50 states will be measured over a three year period; Ohio has been selected to be one of the first States in the federal audit. A national payment error rate will be announced in August 2007. PERM is authorized by the Improper Payments Information Act of 2002.

WHO MUST PARTICIPATE?
Any Ohio Medicaid provider who is selected as a part of the federal audit must comply with the federal audit and Medicaid providers are required to submit documentation that supports the Medicaid claim and payment.

The substance of the documentation may include medical information and/or other kinds of supporting documentation. Providing the requested information as a part of the PERM request will not violate any HIPAA, or any Medicaid confidentiality or security provisions.

Ohio's payment error rates will be determined based on the validity of the supporting documentation for all claims identified as a part of the PERM audit.

WHEN DOES PERM START?
The PERM audit began on January 1, 2006 and is inclusive of all services paid between October 1, 2005 and September 30, 2006. On a quarterly basis, Ohio must provide all claims data and corresponding state policies supporting claims payment to a federal contractor.

Beginning April 1, 2006, providers selected for the audit will be contacted by the federal contractor.

IS THERE A COST?
Any claim that is selected as a part of the PERM audit must have corresponding documentation or it will be considered an error; thereby affecting the Ohio payment error rate. When an error is determined, based on the federal audit, then Ohio and the Medicaid provider will be required to repay the cost of the invalid claim.