Michigan Nursing Home Administrator (NHA) Practice Exam

What is the role of DCH in relation to the Medicaid program?

1. Fiscal intermediary

2. Funding agency

3. Oversight committee

4. Policy advisor

The correct answer is: Fiscal intermediary

The Department of Community Health (DCH) plays a crucial role in the Medicaid program, primarily acting as a fiscal intermediary. This means that it is responsible for managing and overseeing the financial aspects of Medicaid, including budgeting, funding allocations, and reimbursement processes for healthcare providers who deliver services to Medicaid recipients. By functioning as a fiscal intermediary, the DCH ensures that the funds are appropriately distributed and that the financial operations of the Medicaid program run smoothly. This role includes processing claims and ensuring compliance with both state and federal regulations, which is vital for maintaining the financial integrity of the program. The DCH is not simply a funding agency, as it also has to manage the flow of funds and maintain accountability over the financial resources allocated to Medicaid services. Additionally, while oversight and policy advising are important roles that may intersect with DCH responsibilities, the primary function in this context revolves around financial management and administration, solidifying its role as a fiscal intermediary.