Deferral of payment on claims by the Department of Health, Education and Welfare

Response concerning whether the nonpayment upon presentation of the State of Michigan's claims for welfare, Medicaid, and social services expenditures by the Department of Health, Education, and Welfare (HEW) is a deferral as defined in the Impoundment Control Act of 1974, Title X of Public Law 93-334.

GAO found that the delays in payment result from actions of Regional Commissioners in deferring payment to State' quarterly claims for Federal financial participation under the public assistance titles of the Social Security Act as well as claims for retroactive adjustments of previously paid claims, pending determination of allowability and accuracy. GAO feels that HEW's actions are administrative, non-policy related, and therefore are not a deferral within the meaning of the Impoundment Control Act.