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If this determination is made , further payments from Medicaid HMOs are denied , and Medicaid FFS recoupments are made retrospectively . The disallowance letter stated that the " Medicaid and Medicare issue is based on section 2314 " of DEFRA , and proceeded to quote the provision regarding valuation of assets . Since becoming Secretary of Health and Human Services , Secretary Thompson has launched major initiatives to strengthen the nation 's preparedness for a bioterrorism attack ; reorganize the Centers for Medicare and Medicaid Services to encourage greater responsiveness and efficiency ; and urge all Americans to prevent disease by focusing on critical health areas , such as obesity , diabetes , and health disparities . Medicaid fraud unit matters since their overtime hours more than accounted for the hours found by the reviewers to have been spent on non - Medicaid fraud unit matters . These funds flow through such programs as Medicaid , S-CHIP , DSH , etc. Each program has its own set of rules , narrowly prescribing how the funds may be spent .