OIG finds CMS did not properly close out multiple contracts
By HME News Staff
Updated 10:21 AM CST, Thu November 20, 2025
WASHINGTON – The Centers for Medicare and Medicaid Services (CMS) did not close selected contracts at cost of $2.1 billion, according to a new report from the Office of Inspector General (OIG).
The 50 contracts selected for review by the OIG totaled $11.2 billion and were eligible for closeout between Oct. 1, 2018, and Sept. 30, 2023.
The OIG’s recommendations to CMS include:
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Complete the administrative closeout requirements for the 12 contracts, totaling $2.1 billion, that remain overdue for closeout
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Develop policies and procedures that clearly define documentation requirements, roles and responsibilities, and alternative procedures to ensure contracts are closed timely.
The full recommendations are in the report. CMS concurred with the recommendations and described actions it has taken and plans to take to implement them.
In fiscal year 2023, Health and Human Services executed $38.5 billion in contracting actions, with CMS accounting for $7.4 billion, or 19%, according to the OIG.
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