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Payment Error Rate Measurement
Overview
The Centers for Medicare & Medicaid Services (CMS) implemented the Payment Error Rate Measurement (PERM) program to measure improper payments in the Medicaid program and the State Children's Health Insurance Program (SCHIP). The review is authorized by the Improper Payments Information Act of 2002 (Public Law No. 107-300). Under the act, federal agencies must review programs that are at risk for payment errors. PERM uses a 17-state rotational approach to measure improper payments in Medicaid and SCHIP for the 50 states and the District of Columbia over a three-year period. As a result, each state is measured once, and only once, every three years.
The PERM program
- Identifies program vulnerabilities that result in improper payments.
- Promotes efficient Medicaid and SCHIP program operations.
- Helps to ensure medical services are provided to the truly eligible.
The two review components to PERM are the Eligibility review and the Payment (Claims) review.
Want more details?
Please see our Frequently Asked Questions or contact us for additional information or assitance.
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The Medicaid Program Integrity Coordinator updates this site as often as possible. However, CMS issues frequent changes and clarifications for the PERM process. This site is informational only and is not designed to be exhaustive. The information on or referenced on this site is to help providers better understand the PERM process, not to provide legal advice, business advice or protection from liability or responsibility during the PERM process.
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