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​Payment Error Rate Measurement (PERM)

In response to the Improper Payments Information Act of 2002, the federal Office of Management and Budget identified Medicaid and the Children's Health Insurance Program (CHIP) at risk for significant improper payments. As a result, the Centers for Medicare and Medicaid Services (CMS) developed the Payment Error Rate Measurement (PERM) program.

The PERM program measures improper payments in Medicaid and CHIP and produces error rates for each program. The error rates are based on reviews of the fee-for-service, managed care, and eligibility components of Medicaid and CHIP in the Federal Review Year (RY) under review. It is important to note that the PERM improper payment rate is not a "fraud rate," but simply a measurement of payments made that did not meet statutory, regulatory, or administrative requirements.

The PERM program uses a three-year rotation to produce and report national Medicaid and CHIP improper payment rates. This information is shared with Congress. There are three cycles, each containing 17 states (50 states and the District of Columbia). Pennsylvania is part of Cycle 1. The PERM Audit takes approximately two and a half years to complete.

The Department of Human Services' (DHS) PERM team consists of representatives from the Office of Medical Assistance Programs (OMAP), Office of Income Maintenance (OIM), Office of the Budget, Office of Long-Term Living (OLTL), Office of Developmental Programs (ODP), CHIP, and Office of Administration (OA). The Bureau of Program Integrity, under OA, manages the PERM process for Pennsylvania and serves as the liaison between DHS, CMS, and the federal contractors. 

The RY 2022 PERM audit was Pennsylvania's last completed PERM cycle.  The Commonwealth audit outcomes are listed below, along with the National Rolling Error Rates and the Cycle 1 Error Rates. The Commonwealth outperformed many other Cycle 1 states, as well as national level.  

Overall %
FFS %MC %Eligibility %
RY 2022 PA Medicaid Rates
2022 National Rolling Medicaid Rates 15.62%10.42%0.03%11.89%
RY 2022 Cycle 1 Medicaid Rates 6.64%3.72%0.00%5.36%
RY 2022 PA CHIP Rates5.58%0.00%2.50%
2022 National Rolling CHIP Rates26.75%11.23%0.62%24.01%
RY 2022 Cycle 1 CHIP Rates11.49%2.44%0.68%10.46%

2022 PERM Audit Reports

Listed below are the final reports received from CMS for the RY 2022 PERM Audit for PA:

Provider Information

*Note all Provider information will be updated as it becomes available.

Provider Quick Tips related to PERM

Medical Records Request

Providers can expect Medical Record Request Letters from Chickasaw Nation Industries (CNI) to begin in September 2018. Below are examples of correspondence you may receive from CNI.

Federal Contractors Conducting the PERM Audit

​​Statistical Contractor (SC)
The Lewin Group
​3160 Fairview Park Drive, Suite 600
Falls Church, VA 22042
(​703) 269-5500
Review Contractor (RC)
​Empower AI, Inc.
​ 8701 Park Central Drive,
Suite 400-B.
Richmond, VA 23227
​(800) 393-3068
​​Eligibility Review Contractor (ERC)
​Booz Allen Hamilton
​20 M Street SE
Washington, DC 20003
(202) 203-3700
State PERM Leads from DHS​ ​ ​
Christine Kline, PERM Project Coordinator/Liaison  
​(717) 705-6851

Cathy Martin, Medicaid-Claims Primary

(717) 705-8390

Norma Jean Hill, Medicaid Eligibility

(717) 772-2618

Virginia Perry, CHIP

(717) 772-1110

Additional Provider Information

The "providers" page helps to better understand the PERM process and what you may be required to do during a review.